AadharaM Handbook
An educational guide to understanding Power of Attorney documents, the persons involved, the scope of authority and important matters to consider before relying on one.
Introduction
A Power of Attorney is an important document because it may allow another person to act on behalf of the person granting the authority. The document should therefore be prepared and understood with particular attention to the exact powers being granted and the circumstances in which those powers may be exercised.
The information on this page is intended to provide a general educational introduction. The appropriate form, execution, authentication, stamping, registration and use of a Power of Attorney can depend on the particular circumstances and applicable requirements.
Handbook
The following topics provide a general framework for understanding a Power of Attorney.
A Power of Attorney is a document through which one person authorises another person to act on their behalf within the authority described in the document. The nature and extent of that authority depend on the document and the circumstances in which it is given.
The person giving the authority is commonly referred to as the Principal or Executant. The person receiving authority is commonly referred to as the Attorney, Agent or Power of Attorney holder.
A Power of Attorney should clearly describe the purpose for which authority is being granted. The powers may relate to particular transactions, specified property, representation before authorities, financial matters or other permitted activities.
The authority granted should be understood from the wording of the document. Some documents may confer authority for particular acts or transactions, while others may describe broader powers. The scope should be stated clearly and carefully.
Where a Power of Attorney concerns property, the relevant property should be described with sufficient particulars. Depending on the intended authority, the document may also identify the acts that the Attorney is authorised to undertake in relation to that property.
A Power of Attorney may be subject to requirements relating to execution, witnessing, authentication, stamping, registration or other formalities depending on its purpose, contents and applicable requirements.
The Attorney should act within the authority granted by the Principal. A person relying on a Power of Attorney should also consider whether the document is valid, applicable to the proposed transaction and sufficient for the particular act.
The continuation of authority may depend on the terms of the document and applicable law. Questions concerning revocation, termination, incapacity, death or other circumstances should be considered carefully before relying on a Power of Attorney.
Before using or accepting a Power of Attorney, check the identity of the parties, date and execution details, scope of authority, property particulars where relevant, validity of the document and any applicable formal requirements.
Practical Checklist
These general checks can help identify important information that should be considered before proceeding.
Identify the Principal and Attorney clearly.
State the purpose and scope of the authority.
Describe relevant property or transactions accurately.
Check execution and applicable formal requirements.
Confirm that the proposed act falls within the authority granted.
Keep the original document and supporting records safely.
Educational purpose only. This AadharaM handbook provides general educational information and is not legal advice. A Power of Attorney should be prepared, executed and used with reference to the circumstances of the particular matter and applicable requirements. Where necessary, obtain advice from a qualified legal professional and verify current requirements with the concerned authority.
