While the principal parties to a transaction must be legally competent for a contract to be valid, it is possible for a party acting on behalf of a principal to obtain this legal right. In order for personal representatives and trustees to be authorized to act on behalf of a principal, a legal instrument commonly referred to as must be in place.

In order for personal representatives and trustees to be authorized to act on behalf of a principal, a legal instrument commonly referred to as power of attorney must be in place.

Explanation:

Power of attorney is a legal document that gives authorization for a person to act on behalf of them. There are four types of power of attorney. They are as follows:

i)Special or Limited Power of Attorney

ii)Durable Power of Attorney

iii)Springing Durable Power of Attorney

iv)General Power of Attorney

Power of attorney creates a legal relationship between you and another person and specifies that you give power to the other person. In this situation, you are the principal and the other person is an agent.

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