Under the normal circumstances for the purposes of legal process or to perform the legal duties or to transact in any other manner, person himself and if he is not in a position to do so may authorize anybody to act on his behalf. In first instance the person who gives right to the other to perform duty on his behalf is called “Principal” and the person to whom the authority is given is called “Attorney”. The Principal may authorize the Attorney not to pursue his cases only but also to compromise or settle the matters on his behalf. In these circumstances all the acts performed by the Attorney will be deemed to be performed by the Principal who will be responsible for the acts done by the Attorney as he has done them himself.
There are two kinds of Power of Attorneys: General Power of Attorney and Special Power of Attorney.
General Power of Attorney:
means that Attorney may perform more than one job on behalf of the Principal and all his acts will be binding on the Principal as done by him and under his authority.
Special Power of Attorney:
is for only a specific purpose which is explained in that deed of Special Power of Attorney.
It is relevant to mention here that power of attorney either General or Special given by the Principal to the Attorney must be in writing and it cannot be given orally. If Power of Attorney is for any immovable property, sale or for mortgage then it should be registered under section 17 of the Registration Act, 1908.
Power of Attorney should be attested:
All the documents written as a Power of Attorney should be authenticated by a Notary Public, any Court, Judge, Magistrate, Pakistan Consul or Vice-Consul, or representative appointed by the Federal Government, and then it will be presumed correct.
Necessary requirements of Power of Attorney:
Every Pakistani citizen who is a major, adult and according to law is competent to enter into a contract whether resides in Pakistan or outside Pakistan may authorize any other person through power of attorney to act on his behalf. If power of attorney is executed outside the country then Pakistani Embassy or consulate’s authorized officer will verify it and if the power of attorney relates to transfer of property then it should be registered in Pakistan with the concerned registrar.
Power of Attorney in Civil Cases:
Civil cases can be pursued through power of attorney i.e. to appear in the court, to move application and to proceed in the matter. In civil cases the Attorney can do each and every act on behalf of the Principal. Service of summons/notices of the court on the Attorney will be presumed to be service on the Principal. For all these matters no court will allow the Attorney to act on behalf of the Principal unless Power of Attorney is there.
Civil and Criminal liabilities of Principal and Attorney:
Civil liability of Principal; if in performance of acts according to the power of attorney the third party suffers a loss then the Principal will be responsible subject to authorizing for the same act in the power of attorney. Civil liability of Attorney; in case of any action for which he is not authorized he will be responsible for the losses occurred to the third party on the basis of such act.
Criminal liability of Principal and Attorney:
Criminal liability of Principal; under normal circumstances the Principal will not be responsible for the criminal acts of the Attorney. Criminal responsibility of the Attorney; if Attorney is found guilty of breach of trust then he can be preceded under section 406 and 409 of Pakistan Penal Code and be punished.
Cancellation of Power of Attorney:
The Principal can cancel the Power of Attorney whether general or special at any time or in case of death of Attorney or the Principal, it will be cancelled automatically. In the first instance, concerned Registrar where Power of Attorney is registered will cancel it and it will also be published in a newspaper. Power of Attorney will also be cancelled if the job/assignment for which it was given is completed.
Power of Attorney:
- What is Power of Attorney?
- Power of Attorney is a legal instrument/document by which another person is authorized by the maker to act on his behalf.
- What is the difference between “General Power of Attorney” and “Special Power of Attorney”?
- In General Power of Attorney power is given to the attorney to do more than one act, while in Special Power of Attorney power is given to do only one act.
- Under what circumstances does a General Power of Attorney become null and void?
- General Power of Attorney gets cancelled on the death of the Principal or Attorney or when principal cancels it.
- Is photocopy of power of attorney is as authentic as original?
- No. Photocopy produced in the absence of an original will not be taken into consideration.
- Can I appoint more than one person as Attorney through a single deed in Power of Attorney?
- Yes.
- Two attorneys were appointed to act jointly, one dies, can the other act alone?
- Where two attorneys were appointed to act jointly and one of them dies, the survivor cannot act alone.
- Does a Power of Attorney require attestation by witnesses?
- Yes, Power of Attorney to be attested by witnesses.
- Can an attorney be fired?
- Yes, the Principal may revoke or fire Attorney any time.
- Can an Attorney is compensated for his/her work?
- Yes, if so agreed by the Principal and Attorney.
- Can an attorney be held liable for his/her actions?
- Yes, but only if he/she acts with willful misconduct or gross negligence.
- My uncle is mentally incapacitated; can he create a Power of Attorney?
- A mentally incapacitated person cannot create a power of attorney he must know and understand what he is doing.
- How do I select an agent for a Power of Attorney?
- You should choose someone whom you trust fully. He/she can be your family member or a friend. Certainly, you should never give a power of attorney to someone you do not trust fully.
- Can a company (private or public limited) grant Power of Attorney?
- Yes, as company is a legal person, and if authorized by Memorandum and Articles of Association can grant power of attorney.
- What are the precautions one must take when giving a general power of attorney?
- Whenever power of attorney is given by you, he should be trustworthy person. Power of attorney is almost like signing a blank cheque and should be given only where it is absolutely necessary and there is no alternative.
- I gave a Power of Attorney to my relative, can I still make any decision for myself?
- The attorney is only your representative if you intend to do anything yourself you are fully competent for the same, even there is an attorney appointed by you.
- Is attorney answerable to Principal?
- Yes, attorney/agent is answerable to principal.
- What does Irrevocable Power of Attorney mean?
- If the Power of Attorney is executed for consideration then it cannot be unilaterally revoked.
- Can all Power of Attorneys be revoked?
- No, only those which are without consideration.
You can contact City Laws Associates for detailed consultancy and advice relating to Power of Attorney.
