Written by attorneys · grounded in primary & secondary sources — see below
The range of reasonable power that an agent or fiduciary has been delegated or might foreseeably be delegated in carrying out the principal's business or the purposes of the governing instrument. An agent must act only within the authority granted by the principal or document creating the relationship. Authority ends once the specific purpose of the grant has been fully accomplished.
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How it applies
Common Examples
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Power of Attorney Expires After Task
Steven Silva executed a power of attorney authorizing Simon Stern to handle paperwork for consigning and selling fifteen specific paintings in a gallery exhibition. After the show closed and all listed works were sold or returned, Simon used the same document a year later to consign ten different paintings to another gallery. Steven sued to challenge the later transactions. The court held that Simon's authority had terminated once the original exhibition purpose was complete.
Fiduciary Appointment Within Limits
Stella Shapiro, as fiduciary under a will, transferred property to a permissible appointee named in the donee's power of appointment. The transfer complied with the terms of the power and Stella had no reason to know of any violation by the donee. A beneficiary later claimed the appointment circumvented the donee's authority. The court found no breach of trust because the appointment stayed within the donee's scope of authority.
Common questions
Frequently Asked
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What happens when an agent's actions exceed the scope of authority granted in a power of attorney?+
The agent's actions are ineffective and do not bind the principal. The authority is limited both by the text of the document and by its stated purpose. Once the specific task is complete, further acts fall outside the grant even if the document remains physically in existence.
Supporting sources
Does a fiduciary commit a breach of trust by transferring property to a permissible appointee under a power of appointment?+
No breach occurs unless the fiduciary knows or has reason to know that the appointment violated the donee's scope of authority. The fiduciary must exercise reasonable diligence to confirm compliance with the power's terms. Knowledge of improper motivation by the donee triggers liability.
Supporting sources
How does scope of authority interact with apparent authority in agency relationships?+
Scope of authority concerns the actual limits of the agent's power as granted by the principal. Apparent authority arises from the principal's manifestations to third parties that create a reasonable belief in broader power. A third party's reliance on apparent authority can bind the principal even if the agent exceeded the actual scope granted.
Supporting sources
Can party consent expand an arbitrator's scope of authority beyond statutory limits in family-law matters?+
No. Statutes draw a sharp line between arbitrable financial issues and core status determinations such as guardianship. Party consent cannot confer authority to grant a guardianship because courts must exercise parens patriae responsibility. An award exceeding statutory authority is ultra vires and must be vacated.
Supporting sources
Professional ResponsibilityThe client-lawyer relationship · Decision-making authority—actual and apparentMPREFoundational