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Sample Format of Power of Attorney

Narendra Kumar

| Updated: May 01, 2018 | Category: Legal Agreements

Power of Attorney

Power of Attorney is a legally binding document which gives another person, the authority to act on behalf of another in matters of a business transaction, legal affairs[1] or even a private matter as described in the POA. The person is authorized does not require any specific qualifications or designation. Each POA may differ in the manner of the level of control and authority granted and also the purpose.

Download Power of Attorney Agreement Format
You can also download Power of Attorney Agreement Format in the PDF formats.

It should be noted that the Power of Attorney does not take away the right of the principal to act on his own behalf. In case of disagreement with the agent, the decision of principal hold good and there is always remains an option of revocation of the Power of Attorney.

Power of Attorney

How can we categorize Power of Attorney?

These can broadly be categorized as:

  1. General Power of Attorney: As the name suggests, this confers a broader power over the authorized person. It may be for the handling of all the business and legal transactions. Thus, the principal need not be present to sign and verify the documents relating to these transactions or proceedings.
  2. Special/ specific/ Limited Power of Attorney: It only operates only for some particular subject matter or for a specific situation. Example: the agent is authorized only to act on behalf of the principle in respect to leasing out a particular immovable property, collection of rent for the same and legal matters relating to it.
  • The power attorney may come into effect immediately, or after a specific period of time as mentioned. It may continue for a specific period of time or till completion of the prescribed task or till the actual revocation of the POA
  • The importance and convenience of Power of Attorney makes it essential that
    • The document if clear and unambiguous about the purpose, rights conferred and method of ending it in near future.
    • The agent is trustworthy and has some expertise and qualification to act as per the purpose of execution of the power of attorney. The attorney need not be a professional and even be a family member or a closely related person or an acquaintance, only care to be taken is that the agent is reliable.
  • The Power of Attorney may also mention more than one agent in a single Power of Attorney and specify their individual duties or to act jointly (with consent of both of the agents) or to act jointly and severally (any one of the agents can act on behalf of the Principal without the consent of another).
  • The Power of Attorney if is in favor or two or more agents, and one of the agents die, then
  • If agents were to act jointly, the Power of Attorney stands canceled for all
  • If agents to act jointly and severally, then the other and continue to act on behalf of the Principal as per the Power of Attorney

What are the Legal Requirements of Power of Attorney?

Legal Requirements of Power of Attorney
  1. The principle must be of sound mind and having the proper mental capacity to enter into a contract as per the law of the prescribed jurisdiction. Also, the consent must be free from any influences or coercion.
    DURABLE POWER OF ATTORNEY: As per common law, if there arises an occasion when the Principle loses the appropriate mental capacity to execute a POA, the previously executed POA may become ineffective unless it contains a provision, such that the Power of Attorney shall remain effective even after such an occasion arises, which then makes it a Durable Power of Attorney. These are popularly executed for health and medical purposes.
  2. As per the governing laws, there might be a requirement to have signatures of an adult witness or witnesses for the Power of Attorney to become valid and to get the document registered/ notarized as per the subject matter.

Revocation of Power of Attorney

A Power of Attorney may be revoked or canceled at any stage with a legal document showing such an intention. A notice may be given to the agent regarding the same. If the Power of Attorney has been registered the Revocation Deed shall also be required to be registered. It is always in good practice to supply a public notice to the parties dealing who were dealing with the agent while the power of attorney was in force.

Revocation of the Power of Attorney

The power of attorney if executed with some consideration mentioned, then it must be settled in whole before the revocation/ cancellation.

This document shall mention

  1. The names of parties, Principal, and Agent, as per the original Power Of Attorney
  2. The date from which the Power Of Attorney came into existence
  3. The date of revocation of the Power Of Attorney

The agent after being served with a notice of cancellation of the power of attorney will have no authority to act on behalf of the Principal and the principal shall not be bound by the actions of the Agent. In spite of the notice, if the Agent continues to act on behalf of Principal, then can be subjected to appropriate legal notice.

Download Power of Attorney Agreement Format
You can also download Power of Attorney Agreement Format in the PDF formats.
Narendra Kumar

Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.

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