What is a Power of Attorney; When required
A Power of Attorney is a written authority given to another person to act as an agent. It defines the scope of the agent’s authority. It may be general or specific/special. A SPECIAL POWER OF ATTORNEY is required for the following transactions:
1) To make such payments as are not usually considered as acts of administration;
2) To effect novations which put an end to obligations already in existence at the time the agency was constituted;
3) To compromise, to submit questions to arbitration, to renounce the right to appeal from a judgment, to waive objections to the venue of an action or to abandon a prescription already acquired;
4) To waive any obligation gratuitously;
5) To enter into any contract by which the ownership of an immovable is transmitted or acquired either gratuitously or for a valuable consideration;
6) To make gifts, except customary ones for charity or those made to employees in the business managed by the agent;
7) To loan or borrow money, unless the latter act be urgent and indispensable for the preservation of the things which are under administration;
8) To lease any real property to another person for more than one year;
9) To bind the principal to render some service without compensation;
10) To bind the principal in a contract of partnership;
11) To obligate the principal as a guarantor or surety;
12) To create or convey real rights over immovable property;
13) To accept or repudiate an inheritance;
14) To ratify or recognize obligations contracted before the agency;
15) Any other act of strict dominion.
It is best to have a lawyer draft power of attorney to ensure that important transactions will not be voided due to erroneous wordings.
To know more about this topic or if you need help drafting a power of attorney, email email@example.com:8888/dlaw or call Atty. Joyce Domingo at +632-8231090.