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.
A) assignment
B) power of attorney
C) mutual assent
D) consideration

Question

Quizplus · Accepted Answer

A power of attorney is a legal instrument that authorizes a person to act on behalf of a principal. This is commonly used for personal representatives and trustees who need to make decisions or engage in transactions on behalf of the principal. An assignment refers to the transfer of rights or interests in a property or asset, mutual assent refers to the agreement of both parties to a contract, and consideration refers to the exchange of something of value between parties. While these concepts may also be involved in a contract, they do not specifically authorize a party to act on behalf of a principal.

While the Principal Parties to a Transaction Must Be Legally