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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
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.
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.
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?
What does it cover?