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QUESTION: "Is her claim true? Is my entire contract unenforceable and void for this reason?"
ANSWER: First of all, please allow me to take a moment and say that I am genuinely sorry for all you have been through with this ordeal. I mean every word of that, and I deeply regret the obvious serious obstacles occasioned by this situation. Here is how this works. There are two issues here. First, merely including language referencing power of attorney will not suffice, I am afraid to say. Rather, an enforceable power of attorney requires compliance with the statutory formalities: California Probate Code §§ 4400-4409 and 4450-4465. Secondly, a contract can fail but there is way around it by including this type of language: Savings (Severability) Clause. So, it all comes down to the precise wording in most part, meaning your very best next step would be to have your contract reviewed by local legal counsel.
I truly hope all works out for you.
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