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Contract Glossary

Power of Attorney

Definition

A legal document that authorizes someone (the agent or attorney-in-fact) to act on another person's (the principal's) behalf. Powers of attorney can be broad (general) or limited to specific actions. They can be effective immediately or triggered only if the principal becomes incapacitated (springing).

In Practice

If you're traveling abroad and need someone to sign a contract or handle a real estate closing for you, a limited power of attorney lets them act on your behalf for that specific transaction. A durable power of attorney stays in effect even if you become incapacitated — which is why it's a key part of estate planning.

Common in these contract types

Real EstatePartnershipServicesLease

Frequently asked questions about power of attorney

General (broad authority over finances and property), limited/special (specific actions only), durable (survives incapacitation), springing (activates only upon incapacitation), and medical/healthcare (decisions about medical treatment). Each type serves a different purpose.

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This content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.