{"id":56381,"date":"2023-05-06T17:52:31","date_gmt":"2023-05-06T12:22:31","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=56381"},"modified":"2023-05-06T17:52:32","modified_gmt":"2023-05-06T12:22:32","slug":"what-powers-can-be-granted-with-a-power-of-attorney","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/what-powers-can-be-granted-with-a-power-of-attorney\/","title":{"rendered":"What Powers Can Be Granted With A Power Of Attorney?"},"content":{"rendered":"\n<p>Recently, the requirement to engage in contracts or\nagreements involving commercial and other activities has become a frequent and\nsignificant aspect of everyday life. As a person\u2019s workload increases, it\nbecomes mandatory for him to rely on someone else to complete his other tasks.<\/p>\n\n\n\n<p>To complete their other tasks, an individual can\nappoint a power of attorney (POA), giving him the power to handle things on his\nbehalf. The term power of attorney (POA) refers to a legal power that gives a\nspecific person authority to act on behalf of another person. As such, a POA\ngives the agent the authority to act on behalf of the principal. The power of\nattorney has the power to make decisions about the grantor&#8217;s property,\nfinances, investments, or health care.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/what-powers-can-be-granted-with-a-power-of-attorney\/#Definition_of_Power_of_Attorney\" >Definition of Power of Attorney<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/what-powers-can-be-granted-with-a-power-of-attorney\/#Powers_Can_Be_Granted_With_a_Power_Of_Attorney\" >Powers Can Be Granted With a Power Of Attorney<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/what-powers-can-be-granted-with-a-power-of-attorney\/#Important_Rules_to_Keep_In_Mind_While_Drafting_A_Power_Of_Attorney\" >Important Rules to Keep In Mind While Drafting A Power Of Attorney<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/what-powers-can-be-granted-with-a-power-of-attorney\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Definition_of_Power_of_Attorney\"><\/span>Definition of Power of Attorney<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The <strong><a href=\"https:\/\/corpbiz.io\/power-of-attorney\">Power of Attorney<\/a><\/strong> is a document that grants someone the authority to serve as an agent for the person who grants him powers; the person who grants powers to the POA agent is known as the principal. It is important to note here that a person does not have to be an attorney to have power of attorney to represent another person.<\/p>\n\n\n\n<p>A power of attorney is a proxy document that allows\nthe principal to appoint an agent to carry out specific tasks on their behalf.<\/p>\n\n\n\n<p>Although the law governing the powers of an attorney\nis very particular and condensed, the basics of this document are governed by\nagency law as provided in the Indian Contract Act.<\/p>\n\n\n\n<p>There are different types of powers of attorney. The\ncriterion for determining which category a particular document falls into is\nthe subject matter for which the POA agent is granted; if limited to a\nparticular subject matter then it is specific, otherwise it is general POA.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Powers_Can_Be_Granted_With_a_Power_Of_Attorney\"><\/span>Powers Can Be Granted With a Power Of Attorney<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The power of attorney can become effective immediately\nafter signing or only in the event of the incapacity of the principal. The\nfollowing powers can be granted with a Power of Attorney by the principal to\nthe POA agent:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Powers Related To Contracts and Agreements in POA<\/h3>\n\n\n\n<ul><li>The power of attorney gives power to the\nagent to enter into a contract.<\/li><li>The power of attorney allows the agent to\nperform any contract, agreement, or any other writing on behalf of a principal.<\/li><li>POA allows the agent to make any contract\nor agreement, or to sign and execute it, and to deliver and acknowledge such\ncontract or agreement.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Powers Related To Real Estate in POA<\/h3>\n\n\n\n<ul><li>The POA agent can Sell and barter the principal\u2019s\nproperty, and can also rent the principal\u2019s property, and collect rent on his\nbehalf, grant, negotiate, and pledge related to the principal\u2019s property.<\/li><li>POA agent can also handle matters relating\nto the Execution of deeds, contracts, mortgages, promissory notes, cheques,\ndrafts, and bonds;<\/li><li>Administer, handle, liquidate, and\nregulate everything related to matters of principal\u2019s property (real estate);<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Powers Related To Bank Accounts, Certificates Of Deposit, and\nMoney Market Accounts in POA<\/h3>\n\n\n\n<ul><li>POA agents have the power to deposit or\nwithdraw funds from the principal\u2019s bank accounts, certificates of deposit,\nmoney market accounts, etc.<\/li><li>POA agents have the authority to write,\nsign, endorse, accept, and deliver every cheque and bill of exchange.<\/li><li>POA agent can complete or release any\nrequired deeds of trust or other security arrangements<\/li><li>POA agents can Purchase and redeem\ncertificates of deposit at banks, savings, and credits.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Powers Related To Tax Returns, Insurance Policies, and\nWork Related To Other Documents in POA<\/h3>\n\n\n\n<ul><li>POA agent is allowed to submit and sign\ntax returns, and he can also sign insurance forms, and other documents or\npaperwork, if necessary<\/li><li>POA agents also have the power to represent\nthemselves on behalf of the principal in all the above-mentioned situations.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Powers Related To Securities, Stocks, Bonds, and Other\nInvestments in POA<\/h3>\n\n\n\n<ul><li>POA agents have the authority to Sell the principal\u2019s\nSecurities, stocks, bonds, and other investments, if necessary and beneficial\nfor the principal.<\/li><li>POA agent is allowed to complete, perform\nand deliver any assignments of such abovementioned investments or securities.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Powers Related To Medical or Health in POA<\/h3>\n\n\n\n<ul><li>A principal can appoint a POA agent to\ntake decision health-related decisions.<\/li><li>Medical POA won\u2019t go into effect until the\nPrincipal is conscious and in full mental and physical capacity.<\/li><li>For example, the grantor&#8217;s medical\nexpenses may be paid by the POA agent, but he cannot decide whether to turn off\nlife support if it is required.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">The Fundamental Ideas To Keep In Mind About POA Are As\nFollows:<\/h3>\n\n\n\n<ul><li>A\npower of attorney must be strictly and properly interpreted.<\/li><li>If\nthe principal wants the POA agent to enter into collateral agreements, or\ncontracts or complete, perform, or negotiate for any other credit instrument it\nshould be mentioned precisely in the POA. <\/li><li>The\nauthorized representative i.e. POA agent is only permitted to act to the extent\nprincipal has given him power, he cannot bind the principal by his actions any\nmore than he authorized on the basis of the power of attorney.<\/li><li>The\nprincipal is not bound by the agent&#8217;s fraud. For agent fraud, the principal\ncannot be held accountable or sued.<\/li><li>Any\naction taken by the POA agent that goes beyond the scope of the power of\nattorney is not enforceable against the principal if the power of attorney\nmerely authorizes the representative with restrictions on commercial\noperations.<\/li><li>For\ninstance, the ability to sell land does not grant the ability to mortgage it.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Important_Rules_to_Keep_In_Mind_While_Drafting_A_Power_Of_Attorney\"><\/span>Important Rules to Keep In Mind While Drafting A Power Of Attorney<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The\nenacting part of the law is regulated by the performance.<\/li><li>When\npermission is given to the POA agent by the principal by simple words to\nperform a specific act, then those simple words are limited to performing what\nis necessary for the proper performance of that specific act\/task.<\/li><li>Terms\nand Conditions do not confer general powers but are limited to the purpose for\nwhich the power of attorney is granted and shall be construed to extend\nspecific powers only where necessary for that purpose. <\/li><li>The\nPOA document shall be constructed accordingly, it should include all the powers\nnecessary for its performance.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Powers related to contracts, agreements, <strong>real estate<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Real_estate\"><strong>[1]<\/strong><\/a><\/sup>, investments, finance, tax, insurance, securities, and health can be granted to the POA agent by the principal in the power of attorney agreement. As per the observation and rules, the power of attorney is limited to being active for the client only in certain matters, only in a certain type of business, or only in a certain legal transaction as specified by the principal in a POA. Generally, a POA expires after its purpose or performance is complete. The principal is not bound by the agent&#8217;s fraud. For an agent\u2019s fraud, the principal cannot be held accountable or sued. Any action taken by the agent in excess of that capacity will not be binding on the principal if the power of attorney does not grant him that right.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read Our Article<\/b>: <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/what-is-a-power-of-attorney-and-why-is-it-important\/\">What Is A Power Of Attorney And Why Is It Important?\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recently, the requirement to engage in contracts or agreements involving commercial and other activities has become a frequent and significant aspect of everyday life. As a person\u2019s workload increases, it becomes mandatory for him to rely on someone else to complete his other tasks. To complete their other tasks, an individual can appoint a power [&hellip;]<\/p>\n","protected":false},"author":70,"featured_media":56382,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[3491],"tags":[3492],"acf":{"service_id":"799"},"authorName":"Anjali Sharad","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2023\/04\/MicrosoftTeams-image-78.jpg","authorDescription":"I am Law graduate, pursuing L.L.M. 1st year in Intellectual Property Rights and Information Technology, currently working at Enterslice pvt. Ltd. I have 1 year experience in legal content writing for blogs, articles and educational materials, legal research, drafting, and translation.","postViews":1835,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/56381"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/70"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=56381"}],"version-history":[{"count":2,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/56381\/revisions"}],"predecessor-version":[{"id":56384,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/56381\/revisions\/56384"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/56382"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=56381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=56381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=56381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}