Define: Representative Capacity

Acting in a representative capacity means that an individual is authorized to act on behalf of another person or entity, typically in a legal or business matter.

Generally, individuals who have been granted legal authority, such as agents, attorneys, or trustees, can act in a representative capacity. Additionally, certain entities, such as corporations or partnerships, can also act in a representative capacity through their authorized representatives.

Some common examples include an attorney representing a client in court, an executor administering an estate, a trustee managing a trust, or a corporate officer signing contracts on behalf of a company.

Representative capacity is typically established through legal documentation, such as a power of attorney, a trust agreement, or corporate bylaws. These documents outline the authority granted to the representative and the scope of their responsibilities.

No, a representative must act within the limits of their authorized capacity. Acting beyond their authority may result in legal consequences, such as personal liability for any damages caused.

In some cases, a representative may be held personally liable if they act negligently or fraudulently, causing harm to others. However, if the representative acts within their authorized capacity and in good faith, they are generally protected from personal liability.

In certain circumstances, a representative may be able to delegate their authority to another individual. However, this is typically subject to any limitations or restrictions outlined in the legal documentation granting their representative capacity.

Yes, a representative can be removed or replaced if they fail to fulfill their duties or act contrary to the best interests of the person or entity they represent. This may require legal proceedings or following specific procedures outlined in the relevant legal documentation.

In some cases, a representative may be authorized to act on behalf of multiple parties simultaneously. However, this is subject to any conflicts of interest that may arise and must be disclosed and managed appropriately.

Yes, a representative is generally entitled to reasonable compensation for their services, unless otherwise specified in the legal documentation granting their representative capacity. The specific amount and method of compensation may vary depending on the nature of the representation and applicable laws.