A contract that gives authority to another person to manage affairs is known as what?

The correct answer is that a contract that gives authority to another person to manage affairs is known as a mandate. In the context of Louisiana law, a mandate is a specific type of contract where one party (the mandator) grants authority to another party (the mandatary) to act on their behalf, typically to manage affairs or execute specific tasks. This arrangement is rooted in the principle of agency, where the mandatary is expected to act in the best interests of the mandator while adhering to the terms outlined in the mandate.

The concept of mandate is particularly relevant as it outlines the duties and responsibilities of the mandatary, which could include handling financial affairs, making decisions, or representing the mandator in various matters. This distinction is significant in Louisiana's civil law system, where mandates can specify the nature of the powers granted, ranging from general authority to more narrowly focused duties.

In contrast, while terms like "Power of Attorney," "Agency Agreement," and "Delegation" also convey similar ideas about granting authority, they may carry different legal implications or may not align perfectly with the specific definitions used in Louisiana law regarding mandates. Understanding the nuances between these terms is essential for anyone engaging in legal agreements that involve authority and representation.