A power of attorney is a document that evidences the creation of a relationship between two people who are designated as the "principal" and the "agent". The principal designates the agent in the document, and the agent is authorized to act on the principal's behalf - to stand in the shoes of the principal - for whatever business the power of attorney permits. A power of attorney can be general, so that the agent can conduct any sort of business on behalf of the principal, or it may be specific, limited to the transactions expressly provided for in the document. Third parties may treat the agent as if he or she is the principal in any transactions which the agent is authorized to conduct. Powers of attorney are commonly used in all sorts of business activities, and are very frequently executed on behalf of individuals.

Powers of attorney are so common and so handy, that the Uniform Law Commissioners proposed an extension of the concept, the durable power of attorney, in the Uniform Probate Code in 1969. The concept of the durable power outran the Uniform Probate Code in popularity in the states, and in 1979, the Commissioners promulgated the Uniform Durable Power of Attorney Act, separate from the Uniform Probate Code. In 1988, 47 states have adopted the Uniform Durable Power of Attorney Act.

Common law powers of attorney terminated at the death of the principal, or at the time the principal became incompetent. The Uniform Durable Power of Attorney Act permits powers of attorney that expressly provide for it, to continue beyond the time the principal becomes incapacitated. This Act, also, permits people to create springing powers of attorney-powers that do not become effective until and unless the principal becomes incapacitated. Durable powers and springing powers are common mechanisms by which people designate who shall manage property in the event of incapacity. Such designation of an agent avoids the appointment of a guardian or a conservator and the costs of that appointment. Durable and springing powers are frequently used in estate planning and the Uniform Durable Power of Attorney Act has been very popular in the state legislatures.

Even though powers of attorney are very common and the notion of durable power and springing power have become very popular, agents bearing power of attorney documents have not always been treated as if they stand in the principal's shoes. It is frustrating for an agent to find his or her powers refused or disregarded in transactions on a principal's behalf. Although an agent can get a court of appropriate jurisdiction to enforce his or her legitimately exercised powers, the prospect of having to litigate transactions that should take place in the ordinary course of business is not looked forward to. Litigation is expensive and time-consuming. Some kind of a solution has been needed, and the Uniform Statutory Power of Attorney Act (USPAA) provides one.

USPAA provides a form for powers of attorney that can be used by any principal in designating an agent. The form can be used to establish durable or springing powers, if a state authorizes those kinds of powers of attorney (Most states do, as the adoption record of the Uniform Durable Power of Attorney Act indicates.). The form has ready-made statutory language for the creation of a power of attorney. All that anybody has to do is to appropriate that language into a document, fill in the blanks for designation of such things as name of principal and agent, and execute the form with signatures and a notarial attestation. The result should be a power of attorney that satisfies any person or entity with which the agent wishes to do business on behalf of the principal.

An important component of the statutory form is a specific list of transactions that any prospective principal can choose from in delegating powers to an agent. These are set out in the statute in a list. If the principal has a pre-printed form that replicates the statute, all the principal has to do is initial the transaction categories that he or she wishes the agent to conduct on his or her behalf. Examples of the kinds of transactions listed are "real property transactions" and "tangible personal property transactions". There are 15 specific categories of transactions in all, and there is one general category that would incorporate all 15 of them, if the principal wishes to execute a general power of attorney.

The statute makes it easy to designate the transactions which an agent is to perform, but also satisfies any doubts that a third party might have about the agent's powers. There should be no doubts about what is rooted in the statute.

The bulk of USPAA is devoted to the authorities that an agent has under each of the 15 categories of transactions. What may the agent do, for example, when "stock and bond transactions" is checked-off? The agent can "buy and sell all types of securities including, without limitation, stocks, bond, mutual funds and all types of investment securities and financial instruments..." What of "business operating transactions", as another example? The agent can "operate, buy, sell, enlarge, contract, and terminate a business interest", or,"enforce the terms of a partnership agreement by action or otherwise..." These examples indicate the specificity with which powers are treated in USPAA. Rather than depend upon the common law powers, the Uniform Law Commissioners have elected to establish broad, statutory powers. Again, there can be no doubt about an agent's exercise of powers that are clearly designated in a statute.

USPAA clearly makes powers of attorney easier to use, and makes their recognition secure. Any question about a power presented by an agent to an financial institution, contractor, seller, or buyer? The statute provides the answer. There should be no doubt about anything within the enumerated powers in USPAA.