Often, a person may verbally ask that another person do something in his behalf. Where there is no need for assurance to a third person that one person has the authority to act for another then a formalized power of attorney is not necessary. A formalized Power of Attorney is simply a written document giving someone permission to do something for you. It gives another person the legal authority to represent you and act on your behalf. A Power of Attorney is a little confusing in that the term “attorney” is in the name of the document. In this situation, what is meant is that the person acting in your behalf is like an attorney-in-fact. That person is representing or acting in your behalf in a special way.
A Power of Attorney is necessary when some third person is asked to rely on that authority. In general, you need a Power of Attorney whenever you want someone else to act on your behalf in a matter of legal significance. The written document is an expression that this other person has your authority to act. It avoids any legal issue as to whether or not someone has or had the power to act on another person’s behalf.
There are 3 key persons involved with a Power of Attorney. First, there is the principal. This is the person who gives the power. Second, there is your agent (Attorney in Fact). Lastly, there is the third party who relies upon the document.
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