In General Parlances Power Of Attorney is understood as under:
(a) “A document that allows individual to appoint a person or an organization to manage his/her affairs.”
(b) “A document that allows individual to sign contracts for the Principal/Doner”.
(c) “A document that gives agent a legal authority to take decisions for the Principal in regards to property, finances or medical care”.
(d) “A document that allows another person to act on behalf by means of delegation or authorization, and which shall be considered as an act of Principle.”
It is to be noted that, documents/instruments such as ‘Power Of Attorney’ do not create any interest in the property. It is mere a license to act as an agent in a good faith. And thus there is a fiduciary relation between ‘Principal’ and ‘Agent’.
Different Types of Power of Attorney
There are many types of power of attorney
- Legal Power of Attorney
- Lasting Power of Attorney
- Enduring Power of Attorney
- General Power of Attorney
- Financial Power of Attorney
Can Power of Attorney be Revoked?
However, Principal can revoke its POA if he loses his confidence in an Agent. It is to be noted that, revocation of POA takes places due to many reasons. The following are some of the factors which are enumerated for better understanding as under:
i) When POA is for time bond manner, it may get revoke after the laps of time like in LPA Nottingham.
ii) When Principal dies or becomes insane.
iii) When Principal becomes insolvent.
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