Legal Definitions - primary powers

Primary powers refer to the direct and essential authority that one person or entity (known as the principal) explicitly grants to another person or entity (known as the agent) to fulfill specific responsibilities or achieve particular objectives. These are the fundamental rights and abilities that are central to the agent's assigned role, without which they could not effectively perform their core duties.

Here are some examples to illustrate this concept:

• Imagine a homeowner (the principal) hires a real estate agent (the agent) to sell their house. The primary powers granted to the real estate agent would include the authority to list the property on the market, show the house to prospective buyers, and negotiate sale prices within a range pre-approved by the homeowner. These are the core actions the agent must be able to perform to accomplish the task of selling the house on behalf of the homeowner.

• Consider a company's Board of Directors (the principal) appointing a Chief Executive Officer (CEO) (the agent) to run the company. The CEO's primary powers would typically involve making strategic business decisions, approving major budgets, hiring and firing senior executives, and representing the company in significant external negotiations. These are the fundamental authorities necessary for the CEO to manage and direct the company's operations as mandated by the board.

• When an individual (the principal) grants a Durable Power of Attorney to a trusted family member (the agent, often called an "attorney-in-fact") to manage their financial affairs, the document specifies the primary powers. These might include the authority to access bank accounts, pay bills, sell property, or make investment decisions on the principal's behalf. These are the direct and essential financial management authorities explicitly given to the agent to act when the principal is unable to do so.