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In order to execute a durable power of attorney, a client has to have contractual capacity. Contractual capacity means that the person has the ability to understand the nature and effect of the act and the business being transacted.
Primary tabs. In contract law, a person's ability to satisfy the elements required for someone to enter binding contracts. For example, capacity rules often require a person to have reached a minimum age and to have soundness of mind.
Legal capacity refers to a person's ability to exercise their legal rights and obligations. For example, a person who has full legal capacity is able to sign contracts to buy or lease property, manage their money, or get a license to marry.
Where Do I File a Power of Attorney in Texas? Most powers of attorney do not need to be filed with a court. However, suppose a power of attorney is used for a real estate transaction that generally must be recorded. In that case, the power of attorney must also be filed with the county clerk.
A general power of attorney allows the agent to make a wide range of decisions. This is your best option if you want to maximize the person's freedom to handle your assets and manage your care. A limited power of attorney restricts the agent's power to particular assets.