What is a power of attorney?

A power of attorney is indeed a written authorization that allows one person to act on behalf of another in legal or financial matters. This document is critical in situations where individuals are unable to manage their affairs personally due to reasons such as being out of the country, incapacitated, or otherwise unable to take action.

By granting power of attorney, the principal (the person giving the authority) provides the agent (the person receiving the authority) with the legal ability to make decisions, sign documents, and handle transactions in the principal's name. This can include managing bank accounts, selling property, making healthcare decisions, and more, depending on the terms specified in the document.

In contrast, the other options describe different legal concepts. Appointing a guardian pertains to the legal responsibility for another individual, often a minor or someone unable to care for themselves, rather than delegating authority for legal and financial decisions. A contract for legal representation refers to an agreement between a client and an attorney for legal services, which is distinct from the concept of a power of attorney. Lastly, a certificate of legal compliance typically verifies that certain conditions or standards have been met in a legal context but does not involve the delegation of authority as provided by a power of attorney.