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Naked Authority: A Comprehensive Guide to Its Legal Definition
Definition & Meaning
A naked authority refers to a specific type of power granted by a principal to an agent. This authority is given solely for the benefit of the principal, without any compensation or consideration for the agent. The principal retains the right to revoke this authority at any time. The agent is required to perform the act themselves and cannot delegate this responsibility to another party, as the authority is based on the trust placed in them by the principal.
Table of content
Legal Use & context
Naked authority is relevant in various legal contexts, particularly in agency law. It is often encountered in civil matters where a principal needs to appoint an agent to act on their behalf without the expectation of reward. This concept is crucial in situations involving fiduciary duties, where the agent must act in the best interest of the principal. Users can manage related documents and agreements through legal templates available on platforms like US Legal Forms.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A property owner (principal) gives a friend (agent) the naked authority to sell their house. The friend cannot hire another agent to do this and must handle the sale personally.
Example 2: A parent (principal) grants their adult child (agent) naked authority to manage their bank account for a specific transaction, such as paying a bill. The child cannot delegate this task to someone else. (hypothetical example)
Comparison with related terms
Term
Definition
Key Differences
Naked Authority
Authority given to an agent for the principal's benefit without compensation.
Cannot be delegated; revocable at any time.
Implied Authority
Authority not explicitly stated but inferred from actions.
Can involve delegation and is often broader in scope.
Express Authority
Authority explicitly granted by the principal, often in writing.
May include compensation and can be more formal.
Common misunderstandings
What to do if this term applies to you
If you find yourself in a situation involving naked authority, ensure you clearly understand the responsibilities and limitations of the agent. Consider using legal templates from US Legal Forms to draft any necessary agreements. If the situation becomes complex or if you have concerns, consulting a legal professional may be advisable.
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