Which document authorizes a person to act as another's agent in limited or broad areas?

• A. Will
• B. Deed
• C. Contract
• D. Power of attorney

Answer: (D)

A power of attorney is the document that authorizes one person to act for another in designated matters. It creates an agency relationship by naming an agent (the attorney-in-fact) who can handle tasks on the principal’s behalf, and it can be tailored to cover only specific duties or to grant broad authority across many areas such as finances, property, or other affairs. This is different from a will, which only disposes of assets after death and does not grant current authority to act. A deed transfers ownership or rights in real property and does not appoint someone to act as an agent in general. A contract sets mutual obligations between parties and can include agency provisions, but it isn’t the standard instrument used to authorize someone to act for another across varying domains. The power of attorney is designed specifically to give that ongoing authority, and it may be durable (remaining in effect if the principal becomes incapacitated) or limited to certain powers, with revocation possible by the principal while capacity exists.