Power of Attorney

A Power of Attorney (POA) by private parties is a legal document where one person (the Principal) grants another (the Agent/Attorney-in-Fact) authority to act on their behalf in specific or broad private, financial, or legal matters, useful for absence due to illness, travel, or incapacity, involving clear written authorization, signatures, sometimes witnesses, and potential registration/stamp duty depending on jurisdiction and property involvement.
Key Aspects of a Private POA
Parties Involved: The Principal (gives power) and the Agent/Attorney-in-Fact (receives power).
Purpose: Allows someone to manage your affairs (cheques, documents, property, banking, legal) when you can’t be present or are incapacitated.
Scope: Can be General (broad authority) or Special/Limited (specific tasks like managing a property or a business).
Creation: A formal, written document clearly defining the powers granted, signed by the Principal.
Legal Requirements
Witnesses: Often requires two witnesses.
Registration: Mandatory in many places (like India) if it involves immovable property.
Stamp Duty: Payment of prescribed stamp duty is crucial for admissibility in court.
Binding Authority: Actions taken by the agent within the granted powers legally bind the principal to third parties.
Agent Requirements: Must be a competent adult (usually 18+) of sound mind, and trustworthiness is vital.