A person may provide a third-party power of attorney to execute a document on his or her behalf if, for any reason, he or she is unable to do so themselves. It is governed by the Power of Attorney Act of 1882 and other related legislation in India. There are two types of power of attorney - If the primary gives the person holding the power of attorney all the authority required to carry out the tasks for which it was granted. It is called as General Power of Attorney. If somehow the primary requests that the power of attorney bearer utilize only the powers that are listed in the power of attorney agreement known as Special Power of Attorney.
According to the clauses, Power of Attorney can be revocable or irrevocable. In order to prevent any abuse of authority when a Power of Attorney is issued to an agent, it is crucial to understand the processes and regulations associated with revocation.
There are few conditions where power of attorney can be revocable. Let’s learn more about it and know how to revoke a power of attorney.
Conditions for Revocation of a Power of Attorney
Usually speaking, the principal is allowed to revoke the Power of Attorney whenever they chooses. According to Chapter 201 of the Indian Contract Act of 1872, some of the requirements for revocation are as follows:
If the agent's power of attorney is revoked by the principal.
When the principal, the person holding the power of attorney, or both, pass away, are declared mentally incompetent by the court, or are declared insolvent themselves.
In the event that the person holding the power of attorney abdicates.
If the transaction for which the Power of Attorney was given is successfully executed.
Moreover, a power of attorney may be revoked if it is inferred that it has been revoked or if it has been time barred from acting and the power of attorney's term has come to an end.
Criteria for Irrevocable Power of Attorney
A clause declaring that a power of attorney remains irrevocable may be included in the document.
When the agent, who is the person holding the power of attorney, has a stake in the topic covered by the document. Power of Attorney holders must agree to any withdrawal of a power of attorney that falls within this category.
The agent cannot lose the right to the act that he has already performed if he has partially performed the act for which the power of attorney was issued.
How to revoke a Power of Attorney?
If you are planning to revoke a power of attorney, you should be aware some important points.
When a power of attorney is explicitly revoked, whomever has to do so—whether the principal or the agent—must give the other party adequate notice before doing so. If this is not done, the party that was supposed to provide the notice is responsible for paying any expenses and damages incurred by the other party who was supposed to receive it.
Both registered and unregistered powers of attorney are possible. Both of their revocation processes are distinct from one another.
The situation is not legal for one of the proprietors to revoke the agent's authority unless the Power of Attorney was granted collectively by a number of signatories. Withdrawal by one of the principals of the agency, however, is valid if the concurrent execution is carried out in separate transactions.
When a firm dissolves, all powers of attorney it has granted to its agents are automatically revoked.
Any misuse of power of attorney can lead to the revocation.
Conclusion
Although there are a few exceptions, most circumstances can result in revocation. The primary should be informed of these terms prior to granting or receiving a power of attorney. Half knowledge of any topic can be dangerous so that’s why it is very crucial to sign any power of attorney without any prior knowledge. If you are planning for something like this and looking for some legal advice, contact us on the below details.
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