Power of attorney
Querist :
Anonymous
(Querist) 01 August 2011
This query is : Resolved
Dear seniors,
Is it possible to grant the power in a general power of attorney to a second person as co signatory along with the first person? I have read the POA Act but find no such answear. Does the Contract Act or any other Act of the land make it void? Please guide me.
Regards
J.D.Sharma
(Expert) 02 August 2011
What i understand is that you(person authorizing the other to act is the principal, grantor, or donor) want to appoint two persons as your authorized agents(agent, donee, or attorney. As per Indian law, a power of attorney is a legal document that has to be properly framed, using the right legal terminology and setting out the objectives and responsibilities that you wish to authorize the appointee to carry out on your behalf.A general power of attorney authorizes the appointee with several rights and very broad powers, to execute any legal act on behalf of the appointer. This type of a Power of Attorney provides a list of activities that the appointer wants the appointee to perform on his behalf. The agent derives all his power from this document. As per Section 182 of the Indian Contract Act, an agent is a person employed to do any act for another or to represent another in dealings with a third person. According to Section 184 of the Indian Contract Act, any person may act as agent but a minor or a person of unsound mind cannot become an agent, so as to be responsible to his principal. It may be noted that the authority of an agent may be express or implied. An agent can do all the lawful acts that are necessary, in order to perform the act for which he has been given the power of attorney.
It is a general rule that an attorney cannot delegate his powers, unless there is an express provision in the power of attorney. Bankers often come across problems like these while allowing the operation of the accounts of their customers, for example, in a joint account (with the instruction that either of the two can operate the account). If one of the account holders gives the power of attorney to a third person to operate on his behalf, the bankers refuse to honour the said power of attorney so given, because since the mandate to operate the account had been given jointly, so the power of attorney also has to be given by all the account holders.
A sub-agent is a person employed by and acting under the control of the original agent. A substituted agent is a person appointed by the original agent, who holds an express or implied authority of the principal to name another person. Such a person is not a sub-agent, but an agent of the principal for such part of the business of the agency as is entrusted to him.
Generally, an agent cannot delegate and must perform those acts which he has undertaken to perform personally. As per Section 190 of the Indian Contract Act, an agent cannot lawfully employ another to perform such acts which he is authorised to perform personally, except in cases where by custom of trade he can appoint a sub-agent. In other words, an agent or attorney cannot delegate his powers, unless he is expressly or impliedly authorised to do so. But if he appoints a delegate under an express authority, that delegate is not a sub-agent, but an agent or attorney of the principal himself. By delegation, the original attorney is substituted by another attorney. It is to be noted that a delegate cannot be conferred greater powers than those of the original agent. It should be noted that an attorney is different from a sub-agent. A sub-agent is responsible for his acts to the agent and not to the principal.
So, two persons together, a firm, a corporate house or any legal entity can be made as power of attorney.
