With the advent of Information Technology and Internet the modren world has shrunk to the extent of a "Mouse Click" and as such the legal requirement of entering into valid and binding contracts or agreements in relation to business and other transactions have become a common and necessary feature. Due to the tight schedules of business or job, it became necessary to depend on others for getting the things done in time. The hectic activities of the businessmen and industrialists have made the execution of Power of Attorney for delegating the functions. A "Power of Attorney" is a legal instrument whereby one person gives another person the authority to act on his or her behalf as his legal representative, and to make binding legal and financial decisions on your behalf. In Strouds judicial dictionary "power of attorney is defined extensively as an authority whereby one is set in the stead or place of another to act for him". In Blacks dictionary it is described as the instrument by which a person is authorized to act as an agent of the granting it. It is worthwhile to mention that a person need not be a lawyer to hold a Power of Attorney as an agent for someone else.The Power of Attorney can grant considerable Power to a Third party to act on your behalf. Therefore, before you sign your name to legal contracts, you should give careful consideration to the person to whom you choose to grant those powers, and whether any limits should be imposed in the time the power of attorney will last, or in its scope. Granting a Power of Attorney is a legal process that involves the drafting of a document which assigns to another person the power to act as your legal representative.

• To execute all contracts, deeds, bonds, mortgages, notes, checks, drafts, money orders,
• To manage, compromise, settle, and adjust all matters pertaining to real estate.
• To lease, collect rents, grant, bargain, sell, or borrow and mortgage

• To enter into contacts,
• Perform any contract, agreement, writing, or thing
• To make, sign, execute, and deliver, acknowledge any contract, agreement,

• To sell any and all shares of stocks, bonds, or other securities
• To make, execute, and deliver any assignment, or assignments, of any such shares of stock, bonds, or other securities.

• To add to or withdraw any amounts from any of my bank accounts, Certificates of Deposit, Money Market Accounts, etc.
• To make, execute, endorse, accept and deliver any and all cheques and drafts
• Execute or release such deeds of trust or other security agreements as may be necessary
• Deposit and withdraw fundsAcquire and redeem certificates of deposit, in banks, savings and loan

• To file, sign all tax returns, insurance forms and any other documents
• To represent in all matters concerning the foregoing.

• The principal empowers the agent with the right to carry out all legal acts on his behalf without
• restricting it to a particular transaction or act,
• Gives the agent very broad powers to act on behalf of the Principal

• The authority is restricted to act only on certain matters or only a particular kind of transaction or to carry out a specific legal transaction for the Principal.
• The agent's power of attorney expires on the completion of the transaction

DUE DILIGENCE DURING THE EXECUTION OF ANY POWER OF ATTORNEY

• The general rule of power of attorney is that it should be strictly construed.
• Unless an express power is conferred on an agent to enter into contracts of guarantees on behalf of his principal or to execute or negotiate , negotiable instruments for his principal jointly with others
• An agent cannot by his acts bind the principal to a larger extent than he is empowered to do under the power of attorney.
• Fraud by the power agent does not bind the principal. He cannot be sued or otherwise held responsible for fraud by the agent
• If the power does not authorize the agent to carry on a business except with limitations any act done by him in excess of such power will not bind the principal.
• For example power to dispose of property does not confer a power to mortgage the property.
• Power to manage immoveable property cannot permit principal's ornaments which are a moveable proper

• Revoked by the principal himself
• The principal dies or becomes insane or becomes bankrupt
• The business for which the agent was appointed is over
• Mutually agreed upon by the principal and agent
• The right under the power of attorney is renounced by the agent

• Registration of power of attorney is not compulsory. it is optional
• In India, where the Registration Act, 1908, is in force, the Power of Attorney should be authenticated by a Sub Registrar only, (Whenever a person signs the document and his attorney presents/ admits execution).
• In other areas, attestation should be by a Notary or diplomatic agents
• In case an attorney under a valid Power of Attorney himself signs a document, he may, as an executing (signing) party present/admit execution of a document though it is attested by a Notary, unless the text of the power specifically excludes such powers
• Foreign Power of Attorney should be got stamped by the Collector after its receipt in India within prescribed time of 3 months
• Registration of power of attorney authenticates the deed of power of attorney
• Power of Attorney shall be attested by two or more adult independent witnesses who are of sound mind
• If a power of attorney is in respect of an immovable property of value more than Rs100 it must be registered.