Agency is a relationship based on an agreement authorizing one person, the agent, to act for another, the principal. For example an agent may negotiate and make contracts with third persons on behalf of the principal. Actions of an agent can obligate the principal to third persons. Actions of an agent may also give a principal rights against third persons.
An agency can be created for the purpose of doing almost any act the principal could do. However, there are some acts that must be done in person and cannot be done by an agent. Examples would be: testifying in court for another individual, making a will, and voting.
A general agent is authorized by the principal to transact all the affairs of a particular kind of business. For example, a person appointed as manager of a store is a general agent.
A special agent is authorized by the principal to handle a particular business transaction or perform a specific act. For example, a specific power of attorney appointing an agent (attorney-in-fact) to sell a particular piece of real estate or a certain car would be the appointment of a special agent.
A universal agent is authorized by the principal to do any act that can be delegated to a representative. An example would be giving a person a general power of attorney. This form is such a general power of attorney.
A Tennessee General Power of Attorney is a legal document that authorizes an individual, referred to as the "principal," to grant someone else, called the "agent" or "attorney-in-fact," broad powers to handle various financial and legal matters on their behalf. This legal arrangement is designed to provide flexibility and convenience, particularly in situations where the principal may be unable to manage their affairs due to incapacity or unavailability. Tennessee recognizes two primary types of General Power of Attorney: 1. Durable General Power of Attorney: This form remains effective even if the principal becomes mentally incapacitated or unable to make decisions. It empowers the agent to act on behalf of the principal in various matters, such as managing finances, paying bills, buying/selling property, filing taxes, and handling legal transactions. 2. Non-Durable General Power of Attorney: Unlike the durable version, this type of Power of Attorney terminates if the principal becomes incapacitated. It grants the agent authority to act on the principal's behalf in financial and legal matters but only when the principal is mentally competent. In both forms, the agent's authority terminates upon the principal's death unless otherwise specified in the document. It is crucial to select a trusted individual as the agent, as they will have significant control over the principal's affairs. A Tennessee General Power of Attorney document should clearly outline the scope of authority granted to the agent. The powers may include managing bank accounts, dealing with insurance and retirement benefits, making investment decisions, signing contracts, and accessing safe deposit boxes. However, there are certain actions that typically cannot be authorized through a Power of Attorney, such as making healthcare choices or changing the principal's will. It's worth noting that a Tennessee General Power of Attorney can also have specific limitations or conditions. The principal may define the duration of the authority, specify any restrictions, or require periodic accounting by the agent. Additionally, it is advisable to consult an attorney to ensure the document complies with Tennessee state laws and addresses the principal's specific needs and concerns. In conclusion, a Tennessee General Power of Attorney grants broad financial and legal authority to an agent designated by the principal. By having this legal document in place, individuals can ensure the seamless management of their affairs when they are unable to do so themselves.
