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Power of Attorney ?

This is a written authorisation document where a person (“Principal” or “Donor”) confers authority to another person (“Attorney”, “agent” or “Donee”) to act on his behalf in matters of property, business affairs, financial and Banking transactions, legal matters etc.

This document empowers the Attorney to represent the principal in various matters when the latter is out of country or old and incapacitated or even otherwise not able to take care of one’s property and finance etc.

Power of Attorney can either be in general or limited to a specified purpose. Where the principal is unable to attend various dealings, he appoints an Attorney to perform the required actions on his behalf.

Always grant power Attorney to a trusted aide or family member. This document can have negative consequences if the power is misused by the Attorney. Use this utility wisely. In India The Power Of Attorney Act, 1882, frameworks and guides this type of arrangement

Types of Power of Attorney

General Power of Attorney

Where the principal authorises the Attorney to do certain general acts on his behalf. The word ‘General’ here means that the power must be general regarding the subject matter and not general with regard to powers in respect of a subject matter.

Special Power of Attorney

In this, principal confers powers to the Attorney to act on behalf only for specified purpose and the power ceases to exist once the purpose is over or carried out. The transaction can be single or multiple as specified.

Durable Power of Attorney

If you make a durable Power of Attorney or specify the durability factor in the deed, it simply means that the powers of Attorney will remain effective if the principal becomes incapacitated. Generally, the powers of the Attorney is nullified if the principal is incapacitated if the durable condition is not included.

When to use?

  • When you’re looking for an aide to represent you in important matters
  • When a person is unwell and is not in a position to carry out critical transactions
  • When a person is abroad and wants to appoint an abettor to assist in domestic business
  • If you’re preoccupied with other appointments and are unable to concentrate on a project/task

What does it cover?

  • Attorney’s powers related to conducting business
  • Real estate and property matters
  • Selling & Buying investments,operation of bank accounts
  • Power to enter into agreements and registrations
  • Other basic and vital clauses