What is a "power of attorney"?

A "power of attorney" is a legal document that grants one person the authority to act on behalf of another in various matters, typically concerning financial or legal decisions. This document allows the agent or attorney-in-fact to make decisions, sign documents, and take actions as if they were the principal, the person granting the authority.

This form of delegation can cover a wide range of actions and is particularly useful when the principal is unable to manage their affairs due to absence, illness, or incapacity. The specific powers granted can be broad or limited, depending on the principal's desires and stipulations included in the document.

In contrast, the other options pertain to different legal concepts. For instance, representing someone in court refers to legal representation, which is not what a power of attorney is designed for. The written contract for business transactions addresses agreements between parties instead of the delegation of authority. Lastly, regulations governing financial transactions relate to compliance and statutory obligations rather than the act of designating someone to act in one's stead. Therefore, the definition of a power of attorney aligns precisely with the description provided in the correct answer.