Legal Definitions - instrument

In legal terms, an instrument refers to a formal written document that creates, defines, or transfers legal rights, obligations, or duties between parties. It serves as official proof of a legally binding act or agreement, ensuring that the terms are clearly recorded and enforceable.

Here are some examples to illustrate this concept:

• Lease Agreement: When you rent an apartment, you typically sign a written lease agreement. This document is an instrument because it formally establishes your legal right to occupy the property for a specific period and outlines your obligations, such as paying rent and maintaining the premises. Simultaneously, it defines the landlord's rights (e.g., to receive rent) and duties (e.g., to ensure the property is habitable). The lease is a legally binding record that can be used to enforce these terms.

• Articles of Incorporation: If someone decides to start a new business as a corporation, they must file Articles of Incorporation with the relevant state authority. This foundational document is an instrument because it formally creates the legal entity of the corporation itself. It defines the corporation's initial structure, its purpose, and the rights and responsibilities of its initial directors or shareholders, giving the business its legal existence and framework.

• Power of Attorney: A Power of Attorney is a written instrument where one person (the principal) legally grants another person (the agent) the authority to act on their behalf in specific matters, such as financial or medical decisions. This document formally defines the scope of the agent's authority and the principal's rights, making the agent's actions legally valid and enforceable within the defined limits, especially if the principal becomes unable to make decisions themselves.