Power of Attorney|Definition|Types|Features|Benefits of Power of Attorney

Power of Attorney|Definition|Types|Features|Benefits of Power of Attorney

Power of Attorney|Definition|Types|Features|Benefits of Power of Attorney

Many a time I have observed in various working places that people do carry very wrong perceptions regarding Power of Attorney In general sense, you must have had a clear picture of it due to its implication in our various working fields. So, today I have decided to write a blog post on Power of Attorney|Definition|Types|Features|Benefits of Power of Attorney.

Definition of Power of Attorney

Power of Attorney is an instrument or document in which a person being a principal, appoints another person as his agent and confers authority to perform certain acts on behalf of the principal.Therefore, a Power of Attorney is an agreement by which a person(Principal) confers his authority to another person to act on his behalf and in his name.Here, the person who gives Power of Attorney is referred as the donor and the person who acts on his behalf is referred to as the Attorney.In simple words, I can say that Power of Attorney is an instrument of empowerment to a specified person to act on behalf of the donor or principal.

Types of Power of Attorney

A Power of Attorney can be classified into two types viz;

1. General Power of Attorney

When the powers which are conferred upon the agent is general in regard to the subject matter it is called a General Power of Attorney. For example, Power of Attorney for sale of property, managing proceedings of the Court, perform certain financial transactions etc.

2. Special Power of Attorney

When the power of authority is conferred upon the attorney or agent by the donor to act in his name for a specified transaction only it is called a Special Power of Attorney. For example Special Power of Attorney for a specific court case.

Features of Power of Attorney

  • Power of Attorney does not mean that the agent owns any property of the client;
  • The donor can withdraw or revoke the Power of Attorney any time he wants as long as he is of sound mind;
  • It does not allow or gives the right to the agent to manage donor’s own affairs;
  • It delegates very nicely the powers which the agent can enjoy with determining some responsibilities and not more than that;
  • Married women can execute Power of Attorney even if she is a minor;
  • A Power of Attorney can be revoked automatically when the principal dies or becomes bankrupt;
  • It can be revoked at once the purpose of Power of Attorney is fulfilled;
  • Most importantly a Power of Attorney is to be authenticated by documentary evidence as per Section 85 of the Indian Evidence Act, 1872.This means it has to be Notarized in any Court;
  • As per Companies Act, 2013, a company may by writing under its common seal authorize any person to execute any deeds on its behalf to act as attorney and this will bind the company;
  • A Power of Attorney is subjected to Stamp Duty as per Indian Stamp Act.

Power of Attorney|Definition|Types|Features|Benefits of Power of Attorney

What is the Benefits of P.O.A

  • A Power of Attorney is not subjected to Registration.This is optional.This means it is little bit cost effective;
  • The main notion of having a Power of Attorney is that its principles should be strictly construed, providing the principal a sigh of relief;
  • The main benefit of this is that the agent or attorney can not act on his own.He must abide by the notions of the Power of Attorney;
  • Most importantly, the fraudulent acts performed by the agent does not bind the principal legally.Therefore, he can’t be sued or held responsible for such frauds or misdeeds performed by the agent;
  • A Power of Attorney restricts the agent to act within his specific powers or limitations.He can not overdo his powers and the principal shall not be held guilty if he misuses his powers;
  • The benefit of revocation of Power of Attorney gives the principal full authority to withdraw or suspend this at any moment if he finds any misdeeds on behalf of the agent itself.

Final Word on Power of Attorney|Definition|Types|Features|Benefits of Power of Attorney

I hope that after reading this blog post everyone will get a brief idea of what is Power of Attorney is all about.I have tried to keep things very simple for easy understanding.Finally, I hope that I have done enough justice to this post on Power of Attorney|Definition|Types|Features|Benefits of Power of Attorney.Also, I have written a similar kind of post for general awarness on What is Will?Features and benefits of a property Will
If you like this post kindly write to me in the comment box given below and post if you have any query regarding this.Your valuable comments would enable me to write more and more valuable and effective contents.

Also you can read my last post by visiting the following link.

Types of Balanced Mutual Funds in India

View Comments (0)

Disqus Comments Loading...