Legal Guide

What is A Valid Power of Attorney?

by Bhavya Choudhary · 3 min read

valid power of attorney

Introduction

One of the most crucial yet misunderstood components of estate preparation is a valid power of attorney paperwork. As business and commerce transactions progress, having someone else to represent you is frequently handy and is required at various times. 

Valid Power of Attorney

  • Valid Powers of attorney and wills are sometimes confused, although they serve very distinct purposes and are two quite different types of legal papers. A will becomes effective on the day of death. 
  • A POA is effective while the individual is alive and expires upon his death. In light of the fact that they are complementary and do not cross over, you truly need both a Power of Attorney and a will.
  • There are two different kinds of POA: one for property and one for personal care, which gives the topic a unique spin. They are very different from one another. They both deal with many aspects of your life and are necessary for efficient estate planning.

Classification of Valid Power of Attorney 

Two kinds of valid powers of attorney exist, and they are as follows:

General Power of Attorney

  • A general valid power of attorney is a legal document that the principal signs allowing the agent to carry out specific general actions on his behalf. 
  • The word “generic” in this context refers to the need that the power is general with respect to the subject matter and not with respect to powers with respect to a subject matter. 
  • It will not be considered a valid generic power of attorney if the subject matter is confined to something particular or is expressly indicated by the principal while creating a document. Other names for it include restricted valid power of attorney.

Special Power of Attorney

A special valid power of attorney allows the principal to appoint someone to carry out one or more specific tasks. In this kind of power of attorney, the agent is given the authority to act on behalf of the principal in a single or specific transaction.

Durable Power of Attorney

  • A durable valid power of attorney clearly states that the agent’s authority expires should the principal become mentally incapable. 
  • A valid power of attorney, however, may specify that it will continue to be in effect in the event that the principal becomes incapacitated in the future. A durable power of attorney is one that includes this clause.
  • The precise subject matter for which authority is granted must be considered in order to determine whether a power of attorney is broad or particular in character. 
  • The valid power of attorney is a unilateral instrument that the principal or donor signs, delegating authority to the agent; the agent’s signature is not usually necessary.

Individuals Competent to Execute

  • Any individual who can engage in a contract may execute a valid power of attorney. Married women, even if they are minors, can execute a valid power of attorney. 
  • A business must adhere to its “Articles of Association” and common seal while issuing a valid power of attorney. 
  • To ensure that the instrument/deed of power of attorney is valid, the individual granting authority to the designated person must be competent.

Presumption regarding Valid Power of Attorney 

  • An authenticated valid power of attorney will be taken into consideration by the court as a legal document under the Indian Evidence Act 1872, making them legal written documents with more legal significance. 
  • According to Section 85 of the Indian Evidence Act 1872, any document claiming to be a power of attorney must be fully authenticated and executed before the notary or magistrate in order for the court to accept it as valid. Proof of the attorney’s execution may be requested for verification if there is any doubt about their integrity.

Valid Power of Attorney Verification

  • According to Indian law, a valid power of attorney is a legal instrument that has to be correctly drafted, utilizing the appropriate legal vocabulary and outlining the goals and duties that you desire to designate the appointee to carry out on your behalf. Stamp duty must be paid for verification. 
  • A valid power of attorney must be signed and notarized by a qualified notary advocate who can certify that you were competent to grant a power of attorney at the time of signing the document. 
  • This is required if you wish to authorize someone to act on your behalf. Before the notary advocate can certify and issue the document, you must present your ID.

Original Records That Must Be Verified

  • A valid power of attorney correctly validated by the notary or any magistrate must be filed together with an affidavit that authorizes an agent to do certain actions. 
  • The court will verify all the paperwork before registering a power of attorney by affixing its seal and signature. A power of attorney must be legitimate in order for it to be used.

Two or more people may sign a Power of Attorney

  • A valid power of attorney may be issued jointly by two or more people in the interest of one or more people, and when there are several attorneys, one of them must grant written consent for each attorney to operate separately. 
  • When preparing the power of attorney document, a provision stating whether each attorney shall operate jointly or independently should be included.

Revocation of Power of Attorney

  • Unless it is for a certain specified duration, a power of attorney may be canceled at any moment by the principal or donor by sending a written notification to the agent. 
  • Revocation is frequently conceivable in cases when the principal passes away, goes mad, or goes bankrupt. 
  • If the transaction for which the agent was appointed is concluded as mutually agreed upon by the principal and agent, the principal may revoke the valid power of attorney. 
  • If the principal has designated a spouse or legally recognized domestic partner as his agent, that person’s ability to act on behalf of the principal under a power of attorney expires with divorce, legal separation, or dissolution of the registered domestic partnership.

Conclusion 

To get the Valid power of attorney enforced in the Court, one must take legal advice from a professional. Taking legal advice regarding the powers power of attorney guides you to get it drafted and registered in a proper manner. 

To make the Power of Attorney enforceable in the Court of Law, one must get it registered. Registration for Power of Attorney is a complicated procedure, and one must consult a lawyer for the same.

Bhavya Choudhary

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Bhavya Choudhary

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