Power of attorney – how it works and which type do you need?

By Mallbutiken · Fact-checked October 1, 2026

A power of attorney means that one person grants another the authority to perform legal acts in his or her name. The power of attorney can be very limited – for a single bank or administrative matter – or broad. The broader the authority granted, the more important it is to define it clearly and choose the attorney-in-fact with care.

What is a power of attorney?

The central regulations regarding powers of attorney are found in Chapter 2 of the Contracts Act. The principal (grantor) gives the attorney-in-fact (agent) the right to act towards third parties. If the attorney-in-fact stays within the scope of their authorization, the principal can be bound by the legal act.

A power of attorney can be used, for example, to enter into agreements, represent a company, manage bank affairs, handle an administrative matter, or perform a specific task. Requirements may vary depending on the counterparty and the matter. A bank, authority, or other organization may therefore require specific information or their own form, even if the general rules of the Contracts Act otherwise apply.

Authorization and mandate – two important concepts

Authorization (behörighet) describes the outer boundary of what the attorney-in-fact can do with the support of the power of attorney. Mandate (befogenhet) refers to the internal instructions the principal has given the attorney-in-fact.

The difference becomes significant if the attorney-in-fact acts against the instructions. If a third party knew or should have understood that the instructions were being exceeded, the principal may in certain situations avoid being bound. It is therefore wise to make important limitations clear to third parties as well when possible.

Which type of power of attorney is suitable?

Specific power of attorney

Suitable when someone needs to perform a limited task, such as collecting a document, representing you in a specific matter, or entering into a defined agreement. A narrow power of attorney is often easier for the counterparty to verify and reduces the risk of unwanted use.

General power of attorney

A general power of attorney typically provides broad authorization within the specified areas. There is no specific Swedish legal type with a single mandatory standard content for a "general power of attorney." The decisive factor is how the document is actually formulated and which legal acts it covers. Read the guide on general powers of attorney.

Enduring power of attorney (Framtidsfullmakt)

The enduring power of attorney is regulated by a special law and is intended to enter into effect when the principal is permanently and substantially no longer able to manage the affairs covered by the power of attorney. It requires, among other things, two witnesses and can, as of July 1, 2026, also be signed electronically with an advanced electronic signature. Read the main guide on enduring powers of attorney.

Power of attorney for an estate – special situation

Following a death, the estate is as a general rule represented jointly by the heirs. An individual heir who needs to manage bank contacts or other joint matters therefore normally needs a power of attorney from the others. The scope of the power of attorney, the estate inventory, and the bank's requirements must be assessed together. Read our guide on power of attorney for an estate or compare with the estate power of attorney template.

Overview: which power of attorney fits your matter?

Do you need a more detailed comparison? Read the guide on choosing the right power of attorney.

What should be in a standard power of attorney?

For many common powers of attorney, clarity is more important than length. Normally specify:

• who the principal is,
• who the attorney-in-fact is,
• what matter or matters the power of attorney covers,
• any express limitations,
• validity period or end date where appropriate,
• place, date, and signature,
• any additional information required by the counterparty.

Real estate transactions: a power of attorney for agreements on the purchase, exchange, or gift of real property must, according to Section 27 of the Contracts Act, be in writing. For a transfer and any application for title registration to be carried out, specific information or documentation may also be required. A general power of attorney is not automatically sufficient. Read the guides on real estate powers of attorney and formal requirements.

Enduring power of attorney: as of July 1, 2026, it can be executed with an advanced electronic signature according to Section 4 a of the Act (2017:310), but the law's requirement for two witnesses and simultaneous presence according to Section 4 remains. Standard digital signing or a template file does not replace these requirements. Read the legislation on enduring powers of attorney.

How to revoke a power of attorney?

The Contracts Act contains different rules depending on how the power of attorney was granted. A written power of attorney held by the attorney-in-fact may need to be reclaimed or destroyed. If the power of attorney has been communicated to a specific third party, that third party also normally needs to be notified. It is therefore not always enough to simply tell the attorney-in-fact.

See also Mallbutiken's template for revocation of a power of attorney.

Common risks and misunderstandings

• Too broad text. Do not grant more authorization than the assignment requires.
• Unclear identification. The counterparty must be able to understand who is granting the power of attorney and who is permitted to act.
• Internal limitations are not visible. Make critical limits clear in the document itself.
• Mixing up standard and enduring powers of attorney. They serve different functions, and the enduring power of attorney has special formal requirements.
• Assuming the same document is accepted everywhere. Banks, authorities, and foreign parties may require a specific form, notarization, or the original document.

What happens in the event of death or diminished capacity?

Avoid simplified claims that all standard powers of attorney automatically expire as soon as the principal becomes ill or passes away. The Contracts Act contains special rules regarding the effect of a power of attorney in the event of death, bankruptcy, and guardianship. The practical assessment depends on the situation and the type of power of attorney. For planning for future lasting incapacity, an enduring power of attorney is the specifically regulated instrument.