Understanding Power of Attorney: Express Authority

What does it mean when Selma gives Steven written power of attorney?

A. is an undisclosed principal. B. has implied authority, but not express authority, to act as Selma's agent. C. is a disclosed principal. D. has express authority to act as Selma's agent.

Answer: D. has express authority to act as Selma's agent.

Explanation: According to research on power of attorney, Steven now has express authority to act as Selma's agent. This authority is given directly by the principal to the future agent, whether written or oral, to act on their behalf. This is what Selma provided when she gave Steven a written power of attorney.

Power of Attorney: Understanding Express Authority

Power of attorney is a legal document that allows an individual (known as the principal) to designate another person (known as the agent or attorney-in-fact) to make financial and legal decisions on their behalf. When Selma gives Steven written power of attorney, she is granting him the authority to act as her agent.

Express Authority vs. Implied Authority

Express authority is explicitly stated in the power of attorney document, giving the agent clear permission to act on behalf of the principal. In this case, since Steven has written power of attorney, he has express authority to make decisions for Selma. On the other hand, implied authority is not expressly granted but is assumed based on the circumstances.

Disclosed Principal vs. Undisclosed Principal

A disclosed principal is one whose identity is known to third parties dealing with the agent. In this scenario, Selma has disclosed her relationship with Steven by giving him written power of attorney. An undisclosed principal, on the other hand, remains anonymous during transactions made by the agent.

Importance of Power of Attorney

Power of attorney is a crucial legal tool that allows someone to appoint a trusted individual to handle important matters in case they are unable to do so themselves. It grants the agent the authority to make decisions regarding finances, property, healthcare, and other legal affairs on behalf of the principal.

In conclusion, when Selma gives Steven written power of attorney, she confers express authority upon him to act as her agent, empowering him to make decisions on her behalf. Understanding the dynamics of power of attorney and different types of authority can help individuals navigate this legal arrangement effectively.