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Thursday, 5 November 2015

Power Of Attorney

What is it?

The provision regarding power of attorney, are nothing but extension of the

principle of agency. The delegation powers has become the need of the hour

because life has become complex and fast requiring a person to do many things

in a short time, as well as simultaneously. This is not practicable . Hence,

delegation of powers[comes into pictures].This situation gives rise to the concept

of agency.

The section 182 of the contact Act defines the words ‘Agent’ and ‘Principal’ as

follows;-

An agent is a person employed to do any act for another or to represent another

in dealings with third person ;the person for whom such act is done or who is so

represented ,is called the ‘Principal’.

Thus an agent is the connecting link between the principal and third person . This

intermediately  has the power to create legal relationship between the principal

and third parties. The relationship of principal and agent  arises where the

principal gives consent that the agent a shall act on his behalf, 111and the agent

consents so as to act.

Essential features of principal and agent[attorney]

 The relationship between principal[ done of powers]and agent[ attorney]  is a

sort of contractual  relationship

There are some essential features at this contractual relationship;-

Principal must be competent to contract, section 183 of the contract Act clearly

provides that any person who is of the age of majority according to the law to

which he is subject, and who is of sound mind, may employs an agent. This does

mean that a minor cannot a employ an agent. Any such appointment of an agent

by a minor is void

Any person may become an agent. Full contractual capacity is not necessary to

enable a person to represent another as agent. An infant can be an agent. But

since he is incompetent to contract, he will not be responsible to his principal

Though, for a contract to be effectual there must be an element at consideration

,no consideration is necessary to create an agency.

Representative character and derivative authority is the distinguishing features of

an agency.

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