The term for a legal document that grants someone else the authority to act on your behalf in legal matters is known as a Power of Attorney.
Definition:
A Power of Attorney (POA) is a legally binding document that allows an individual, referred to as the principal, to authorize another person, known as the agent or attorney-in-fact, to make decisions and take actions on their behalf in legal, financial, or medical matters.
Types of Power of Attorney:
1. General Power of Attorney: Grants broad powers to the agent to act on behalf of the principal in various matters, such as handling bank accounts, signing documents, and managing property.
2. Special or Limited Power of Attorney: Grants authority for specific tasks or for a limited period, such as selling a property or handling a single legal transaction.
3. Durable Power of Attorney: Remains in effect even if the principal becomes mentally incapacitated.
4. Medical Power of Attorney: Authorizes the agent to make healthcare decisions if the principal is unable to do so.
Legal Requirements:
- The principal must be of sound mind at the time of creating the POA.
- The document must be in writing and signed by the principal.
- It may require notarization or registration depending on the jurisdiction and type of POA.
Significance:
A Power of Attorney ensures that an individual’s affairs can be legally managed by a trusted person, especially in situations involving absence, illness, or incapacity.
Conclusion:
The correct term for a legal instrument that authorizes another person to act on one’s behalf is: Power of Attorney.