An irrevocable authority agreement, also known as an irrevocable power of attorney, is a legal document that grants a person, referred to as the agent, the power to act on behalf of another person, referred to as the principal, in a specific matter. Unlike a regular power of attorney, an irrevocable authority agreement cannot be revoked by the principal once it has been executed.
This means that the agent has the authority to carry out the tasks outlined in the agreement for as long as they are necessary, and the principal cannot take back this authority. The only exception to this rule is if the agreement contains a specific clause that allows for the principal to revoke the agreement under certain circumstances.
An irrevocable authority agreement is often used in situations where the principal is unable to act on their own behalf. For example, if an elderly person becomes incapacitated and is no longer able to make decisions for themselves, a family member or trusted friend may be granted an irrevocable authority agreement to handle their affairs.
The agreement can also be used in business transactions, where a principal may grant an agent the power to sign contracts or make financial decisions on their behalf. This can be particularly useful in situations where the principal is unable to be physically present or is unavailable to make these decisions.
It is important to note that an irrevocable authority agreement should be created with the assistance of a qualified attorney to ensure that it is legally binding and meets all necessary requirements. Additionally, the principal should carefully consider who they are granting this authority to, as it cannot be revoked once it has been executed.
In conclusion, an irrevocable authority agreement is a powerful legal document that grants a person the authority to act on behalf of another person in a specific matter. While it should be created with the assistance of an attorney and careful consideration, it can provide peace of mind and ensure that important decisions can still be made when the principal is unable to do so themselves.