Power of attorney – “Mightier than the sword”?

30 Aug 2022

Not everyone has your best interest at heart. It is necessary to have everything on paper so that you know your belongings are taken care of and the person you trust is acting with the required care and skills within the powers of a power of attorney.

What is a power of attorney?

A power of attorney is a legal document that gives authority to a person (agent) acting on behalf of a principal (person giving authority). A power of attorney should set out the agent’s abilities to act on behalf of the person giving authority. This power includes but is not limited to signing legal documents, entering into contracts, regulating bank accounts, selling and/or buying property and instituting legal action.

The different types of power of attorney

There are two types of power of attorney, a general power of attorney and a special power of attorney. A special power of attorney is used where a specific act is required to be performed by the agent. An example of a special power of attorney is where the agent signs an agreement of sale on behalf of the principal.

A general power of attorney grants the agent more powers, including the power to amend the sale agreement, sign contracts and take possession of a property on the principal’s behalf. An example of a general power of attorney would be when you grant the agent the capacity to handle all your affairs on your behalf.

What are the requirements for a valid power of attorney?

The principal must sign a power of attorney giving the agent power to act on his or her behalf. The signature needs to be attested by one witness to confirm the principal’s signature. The principal must have the necessary capacity to enter into a power of attorney just like any other contract to give authority to the agent. The principal giving authority to the agent should be of sound mind and should also not be under 18 years old. The intentions of the principal should be set out clearly in the document. To be sure that your intentions are evident in the document, it is of paramount importance that an attorney with the necessary skills and knowledge drafts a power of attorney.

When does a power of attorney come to an end?

A power of attorney will end at the passing of the principal or agent or when either one of them is declared mentally incapacitated. Additionally, a power of attorney is terminated when the agent’s authority ends after completing a specific action. Finally, the principal may cancel the agent’s power of attorney by signing a document setting out the revocation date.

Conclusion

The two main types of power of attorney available to you are the general and special power of attorney. However, you must make sure that you use the correct power of attorney. Seeking legal advice before drawing up your contract or allowing someone to sign a power of attorney is essential.

Contact an attorney at SchoemanLaw Inc for your legal

See also:

• When incapacity results in the lapsing of a power of attorney
• Are you sure that your power of attorney is valid?
• How you sign a contract can determine the recourse available if things go wrong
• On the right side of repudiation

(This article is provided for informational purposes only and not for the purpose of providing legal advice. For more information on the topic, please contact the author/s or the relevant provider.)