What is a Power of Attorney?
A Power of Attorney is a
- formal instrument by which
- one person empowers another specific person to represent him, or act in his stead,
- for certain purposes.
The Indian Contract Act also lays down that
An “agent” is a person employed to do any act for another, or to represent another in dealing with third persons. The person for whom such act is done, or who is so represented, is called the “principal”.
Hence, the donor of the power is called the principal or constituent and the donee is called the attorney or agent.
What rights does it give the holder?
- The donee of a power-of-attorney may, if he thinks fit, execute any instrument or or do any thing in his own name and with his own signature, by authority of the donor of the power.
- The donee is not entitled to exercise his powers for his own benefit e.g. draw cheques on the former’s account to pay his own debts.
Can a Power of Attorney be revoked or cancelled?
What are the laws governing the Power of Attorney?