WHAT IS POWER OF ATTORNEY?
Power of Attorney is a legal document where one person (principal) gives another person (agent) the authority to be his or her representative and to take financial and legal decisions on his or her behalf. A Power of Attorney is granted to allow the agent to take care of a variety of transactions of the principal, handling situations on behalf of him, or maintain safe-deposits etc. A power of attorney is generally terminated when the principal dies or becomes incompetent, but the principle has the right to revoke the power of attorney at any time.
Types:
- General Power of Attorney– Under this the power given to another person is broad and which are necessary to accomplish the objects for which the power of Attorney is given to the person.
- Specific Power of Attorney– Under this the power given to another person is limited as the power of attorney holder has to exercise only those powers as mentioned in the Power Of Attorney Deed.
ADVANTAGES OF POWER OF ATTORNEY
- Provides the ability to choose who will act on behalf of you.
- Less Expensive
- Saves time.
- Makes Financial decisions
- Protection against costly court proceedings.
- Can act as an guardian.
REVOCATION OF POWER OF ATTORNEY
Revocation means cancelling or recalling the authority given to another person. It can be revoked at any time whenever you wish and for any reason. The revocation should always in writing and signed by the person revoking it.
Section 202 of the Indian Contract Act and Revocation of Power of Attorney
Section 202 of the Indian Contract Act, 1872 reads as:
“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.
Generally, Power of Attorney can be revoked, but under the following cases the principal cannot revoke the power of Attorney:
- In the case where the Power of Attorney holder has some interest of his own on the subject matter. For revocation in this case the permission of the Power of the Attorney holder is mandatory.
- Where agent has exercised the act for which Power of Attorney was granted, and so he cannot be removed with the right for the act that has already been exercised.
For Drafting a Power of Attorney kindly click here
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