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Author - Associate Aswini Ramesh

What Is A Power Of Attorney?

The power of attorney is a legal document that authorizes one person to represent and take decisions on behalf of another, it is usually is executed when the individual on whose behalf the actions are taken is out of the country or is incapable of taking such decisions because of old age or illness. The person who gives the power of attorney is the ‘Donor’ and the person to whom the power of attorney is given is the ‘Donee’

Power Of Attorney Act, 1882

The power of attorney act, 1882 lays down certain provisions in regards to the validity and legality of appointing a power of attorney.

According to Sec 1(A) of the act, ‘power of attorney’ includes any instrument empowering a specified person to act for and in the name of the person executing it.

Hence, the power of attorney is a legit written instrument authorizing one individual to carry out actions and take decisions on behalf of the other when the donor is out of the country or indisposed

Types Of Power Of Attorney

General Power Of Attorney :  A general power of attorney authorizes the agent to perform general tasks and there shouldn’t be any mention of a specific action in a general document. General authorizations can be given on matters of taxation, property, banking, legal disputes etc.,

Specific Power Of Attorney : Specific Power Of Attorney as the name states is executed for a specific purpose. A specific power of attorney is given for completing a particular task and once the task is completed the power of attorney comes to an end. Also the principle may not necessarily have just one specific power of attorney but can have multiple specific power of attorneys

Durable Power Of Attorney : A durable power of attorney continues even after the death of the principle and this should be expressly stated in the power of attorney deed.

Non-Durable Power Of Attorney : When it isn’t expressly stated in the power of attorney deed that it should be continued even after the death of the principle then it is known as a non- durable power of attorney.

Revocation Of Power Of Attorney

A power of attorney can be revoked or cancelled in most of the cases. 

• As per Section 201 of the Indian Contract Act, an agency can be terminated when the principle revoked his/her authority or when the agent renounces his/her business of the agency. It is also mentioned that an agency can be revoked if the principle or agent dies or is of unsound mind.

• As per Section 202 of the Indian Contract Act, speaks about when an agency cannot be revoked ‘ Where the agent has himself an interest in the property which forms the subject matter of the agency, the agency cannot in the absence of an express contract, be terminated to the prejudice of such interest’.