A durable power of attorney is a written instrument under which an individual appoints another person as attorney in fact or agent. By executing the durable power of attorney, the principal authorizes the agent to engage in the certain specified business or financial transactions on behalf of the principal with third parties. Durable power of attorney is a contract, which creates an agency–principal relationship.
Generally, in a durable power of attorney the authority of the agent to act on behalf of the principal survives the disability of the principal. Under the laws of Guam also, disability or incapacity of principal has the same effect as if the principal were competent and not disabled.[i]
Furthermore, in Guam, when an agent acts in good faith, death of a principal of a durable power of attorney does not terminate the power of the agent until actual knowledge of principal’s death.
A durable power of attorney must be recorded if it is created for execution and delivery of any instrument, which requires recordation.
[i] 18 G.C.A. § 21502