Volmacht

A power of attorney is a legal instrument by which a person, the principal, grants another person or entity, the attorney-in-fact, the authority to act on the principal’s behalf. Such authority may be conferred either orally or in writing, although a written instrument is generally preferred for evidentiary purposes.

The utility of a power of attorney lies in its capacity to enable parties to effect transactions and perform legal acts without physical presence, which is particularly advantageous in complex commercial or personal matters. It eliminates delays and affords flexibility.

In practice, powers of attorney are commonly employed in real estate transactions, banking matters and the administration of estates, where the attorney-in-fact may, for example, be a notary or legal counsel.