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A limited power of attorney is a legal document enabling someone to act on your behalf in specified circumstances. It is particularly useful for individuals who will be out of the country during significant business transactions or those who prefer not to manage every financial question themselves. This type of power of attorney has defined limits, including duration, which the principal can specify. The principal (the one granting authority) can appoint an agent to perform actions that typically require their consent, such as signing documents, and does not need to be an attorney to do so. Understanding these limitations is crucial for effective use.