How does Maryland law regard "power of attorney" in agency relationships?

Maryland law recognizes "power of attorney" as a legal document that grants authority to an agent to make decisions and take actions on behalf of the principal, specifically in legal and financial matters. This means that under the specified terms of the power of attorney, agents are empowered to manage the principal's affairs, engage in financial transactions, and make important legal decisions as laid out in the document.

This provision is essential as it provides a clear framework within which agents can operate, allowing them to fulfill their roles effectively while ensuring that they act within the boundaries defined by the principal. This is a critical aspect of agency relationships, where clarity and authority are key to proper functioning.

The other options present misconceptions about the role of a power of attorney. For instance, the idea that agents can act without the principal's knowledge contradicts the principle of agency, which emphasizes that agents should act in accordance with the principal's directives. Similarly, the notion that agents must avoid all financial matters ignores the very purpose of a power of attorney, which is to enable agents to handle those matters on behalf of the principal. Lastly, stating that agents are limited to verbal agreements does not align with the written nature of a power of attorney, which is a formal legal document designed to grant