Final answer:
An agent with general power of attorney has full legal authority delegated by the principal to manage personal and business matters. Agency, executive departments, and rational-legal authority are central to understanding the breadth of such authority, similar to the powers of government executives.
Step-by-step explanation:
The individual described in the question is known as an agent with general power of attorney. This type of agent possesses the most comprehensive authority that the law allows, enabling them to perform all legally delegable actions on behalf of the principal. Such actions include signing contracts and managing both personal and business matters. The concept of agency is central to this discussion, as the agent is empowered to act and make decisions within the scope of their authority. The scope of an agent's powers can be as broad as the authority granted to executive departments or corporate entities under the law, or as specific as the responsibilities a president might choose to delegate to a vice president.
It is essential to understand the different types of power: rational-legal authority, which is based on established rules and laws, and traditional authority, which is founded on long-standing customs. This characterization of power and authority also applies to political leaders or executives, such as a president or prime minister, who are vested with both formal and informal executive power to enforce and implement policy, with their official capacity often being clearly delineated by law and regulation.