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POWER OF ATTORNEY

Hello friends today we shall discuss the basics behind the document commonly termed as ‘Power of attorney’ it is a french word, which means a legal document giving the authority to an agent to act on behalf of the principal.



Situations

When the person appointing an attorney is unable to attend a particular event out of some incapacity. For e.g., a person is staying in Delhi and he wants to sell his property in Mumbai, then he may appoint an agent i.e. authorize some other person who can sell his property on behalf of the original owner. Likewise, agent can also be appointed in case the principal is incapacitated by an illness or disability. 



Types

Now power of attorney may be special or general in nature. Special power of attorney is executed for executing a specific purpose as mentioned thereof whereas general power of attorney may be given for in respect of a series of acts emerging out of particular act. For e.g. ,to manage the general affairs to a  particular property or to institute a case pertaining to the said property in court of law comes under general power of attorney. Power of Attorney is governed by the provisions dealt with in Chapter X of the Indian Contract Act, 1872.



Some relevant sections of Chapter X of the Contract Act, 1872  

Sec 182 --- defines an "agent" is a person employed to any act for another in dealing with third persons. And the person for whom such act is done is defined as the "principal".

 Sec 184  --- states that any person who is a major and of a sound mind can become an agent. Further, there need not be any consideration for appointing an agent through power of attorney.

 Sec 188—  An agent who is appointed to do an act has the authority to do all the lawful things that are necessary for completing the said act/acts.


When does Power of attorney gets terminated

Sec 201 ---An agency can be terminated by principal by revoking his authority. It can normally be done by issue of notice and the time notice is received is the time of termination. Also, it can be terminated on part of the agent by renouncing his duties. In case the principal or the agent dies, then also it is deemed to be terminated.

Sec 202—states that the agency cannot be, in absence of any express contract, terminated where the agent has the interest in the subject matter of the agency. Eg A gives authority to B to sell his land and to realize the debts due to him from A. In such an event, A cannot revoke the power of attorney, nor it will terminated by his death or insanity.



Content of the document i.e. Power of attorney

The description of the principal like his name, address, fathers name, etc needs to be stated clearly. Further all details shoul be verified by documents like aadhar card, pan card, etc. The same applies to the agent as well. The document shall also specifically contain the acts for which the agent has been appointed in clear terms without any doubt. In other words, all plausible situations that might arise in future while dispensing of the duties by the agent shall be duly mentioned and contained in the said document. Unless there are reciprocal acts mentioned in the document, there is no need for the agent to sign the said document and it is deemed to be valid if unilaterally signed by the executor alone. Also, in order to state that the document is genuine, it shall contain the reasons as to why the said document has been executed. Registration of the power of attorney is not compulsory.  However, it is advisable to get the said document registered so that in cases this document is lost in future, in such an event a certified copy of the same can be fetched from the relevant authority.


Case of fraud

Suppose in case a power of attorney for sale of immovable property is been made in favor of one of the relatives with the arrangement that proceeds out of the same shall be returned to the principal, in such an event if later on it is found that fraudulently the agent sold the said property to one of his relatives at a sale consideration which is very less as compared to the actual value, in such an event the principal can file a case in court of law for setting aside the power of attorney and the subsequent sale deed executed out of fraud.

 

I hope I have made myself clear with respect to the topic discussed above. For any queries, feel free to write in the comment section.

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