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 Texas General Power of Attorney is a legal document that grants someone, known as the agent or attorney-in-fact, the authority to handle a wide range of financial and legal matters on behalf of another person, known as the principal. This document is particularly useful for those who may not be able to manage their affairs due to physical or mental incapacity, an extended absence, or for any other reason. A General Power of Attorney is quite broad in its scope and allows the agent to make decisions and take actions on behalf of the principal in various areas, such as managing finances, operating businesses, buying or selling real estate, handling legal proceedings, and even making healthcare decisions in some cases. In Texas, there are specific types of General Power of Attorney that individuals should be aware of, depending on their unique circumstances and preferences: 1. Durable Power of Attorney: This type remains in effect even if the principal becomes incapacitated or unable to make decisions. It offers long-term protection and is often recommended ensuring continuous management of affairs. 2. Non-Durable Power of Attorney: Unlike the durable version, this type of Power of Attorney ceases to be effective if the principal becomes incapacitated. It is typically used for shorter-term transactions or situations where a principal wants to grant authority temporarily. 3. Springing Power of Attorney: This type "springs" into effect only when a specific event or condition mentioned in the document occurs, such as the principal's incapacity. It is a method to ensure that the agent's authority is only activated when needed. 4. Limited Power of Attorney: Also known as a Special Power of Attorney, this type grants the agent limited authority to act on behalf of the principal in specific and defined matters, such as the sale of a particular property or handling financial transactions during a specific period. When drafting a Texas General Power of Attorney, it is essential to carefully consider the powers and limitations being conferred, and it is strongly recommended consulting with an attorney specializing in estate planning or elder law to ensure compliance with Texas laws and to address any specific concerns or requirements.
