What is a Power of Attorney; When required

Power of Attorney 300x201 Power of AttorneyA 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 info@domingo-law.com or call Atty. Joyce Domingo at +632-8231090.