Power of Attorney is a legal document that gives one person the power to act for another. But when the other person shows misconduct or misuses such power, then you can issue a legal notice for cancellation of power of attorney. Keep reading to know what is a Power of Attorney, its purpose, types of Power of Attorney, how to draft and register a Power of Attorney. Further, it mentions how to revoke the power of attorney and other legalities involved.
How to draft a Power of Attorney
Power of Attorney can be oral or written document, however, it is recommended to have a written Power of Attorney that states its purpose clearly. There are a plethora of online free templates available to use but it is highly advised to abstain from using them because if your Power of Attorney does not mention its purpose clearly and is full of ambiguity, then it might create legal issues and could be challenged easily. Therefore it is recommended to always consult a lawyer who can make a draft of your Power of Attorney suitable to your requirements.
Essentials for Power of Attorney
A Power of Attorney should include details like Name, Address of Principal and Agent along with date and place where the Power of Attorney is being executed. Apart from that, it should
- describe the type of powers that are being delegated and whether the Power of Attorney is general, specific, durable or irrevocable.
- state the list of powers that are being conferred on agents like, custody, management of property, healthcare, etc.
- include the liabilities of principal, agent or third party if any.
- have signatures of respective parties along with notary.
How to register a Power of Attorney
For the Indian residents, the registration process of a Power of Attorney is as follows.
STEP 1: Draft a Power of Attorney on a stamp paper of value depending upon your state with all the terms and conditions.
STEP 2: Make sure the deed is signed by you and the attorney and get it notarized.
STEP 3: Visit your local registrar or sub-registrar office for submission with 2 witnesses along with all the supporting documents like Aadhar Card, Photographs, Residence Proof, etc. in original and photocopies (Makes sure the photocopies are attested by a gazetted officer)
STEP 4: After submission, the registrar will deposit your documents and shall provide you with one copy of the same.
How do you choose an attorney-in-fact?
The attorney-in-fact can be family, friends, relatives or someone of your trust. Important considerations before choosing attorney-in-fact are -
- Your Attorney of Fact should be a person of proper age and mature enough to understand the transactions involved.
- It is recommended that your attorney-in-fact should be easily reachable and live in close proximity to you.
- Mere trust and goodwill is not a sole criterion, he/ she should have sound knowledge of financial affairs and experienced enough to perform legal transactions if and when required.
Cancellation of power of attorney in India
In India, if the attorney is unable to do any particular act, execute any particular document, or fails to appear before the Court or any other authority, then the principal can revoke a Power of Attorney.
When can you revoke a Power of Attorney?
The principal can revoke a Power of Attorney if,
- The attorney does anything contrary to the terms and clauses of the Power of Attorney then the principal can revoke the power of attorney after giving prior legal notice for cancellation of power of attorney.
- The due completion of work or business for which there is a power of attorney.
The issuance of the power of attorney ends when the principal himself/ herself completes the business. Then it becomes unnecessary to keep the power of attorney and the Principal can revoke the power of attorney.
When can you not revoke the power of attorney?
- When the attorney has some rights and interests over the subject matter. For that, the power of attorney, the principal cannot revoke the power of attorney. In this case, the consent of the attorney is mandatory for revocation.
- In case the attorney partly exercises his duty in accordance with the clauses of the power of attorney. Then there is no deprivation of the right of the act which he performs.
Laws governing the Power of Attorney:
Relevant Statutes dealing with Revocation of Power of Attorney
- The Power of Attorney Act, 1882 (2)
- The Indian Contract Act, 1872(1)
How to revoke a Power of Attorney?
You can revoke a Power of Attorney by signing a Deed of Revocation. Also, it is mandatory at the time of execution of his/her duty, the attorney is a guaranteer by the Principal. However, if the attorney doesn’t act lawfully or in good faith, or does such work attracting criminal punishment. Then the Principal is not liable to secure the Attorney.
How to revoke a General Power of Attorney?
The General Power of Attorney can be revoked in the same manner which is,
- Get a notarized document drafted for revocation of the Power of Attorney expressing clearly that you want to revoke the authority of the said person.
- Advertise the same in a local or national newspaper that the said person is no longer authorized by you, to act on your behalf.
- If your Power of Attorney was registered at the registrar or sub-registrar office, then you need to get your revocation deed registered by the same office. It is also advisable to send the legal notice of cancellation of power of attorney along with a copy of revocation deed to the attorney and to the concerned persons with whom the attorney has or likely to enter into transactions.
- In the case of unregistered Power of Attorney, you are only required to issue a public notice in local or national newspapers to make it valid.