Final answer:
A Power of Attorney is a document that empowers an agent to act on behalf of the principal, who must sign it. It applies under conditions specified in the document, often including the principal's incapacitation.
Step-by-step explanation:
A power of attorney (POA) is a legal document that gives an individual, known as the 'agent' or 'attorney-in-fact,' the authority to act on behalf of another person, known as the 'principal,' under specific circumstances. The agent can perform a variety of functions and make decisions related to the principal's property, finances, medical care, or any other matters provided in the POA document.
The principal is the one who must sign the power of attorney, often in the presence of a notary or witnesses, depending on the laws of the jurisdiction. It is vital that the principal is competent and understands the significance and implications of signing the document at the time it is executed.
A power of attorney can become effective immediately upon signing, or it can be a 'springing' POA, meaning it only takes effect upon the occurrence of a specific event, typically the principal's incapacitation. The terms and conditions under which the POA applies, and when it ceases to be effective, should be clearly stated within the document.