Power of Attorney & affidavit

POWER OF ATTORNEY:

A Power of Attorney is a formal written document through which the principal designates an individual as their agent. In this legal arrangement, the principal grants authority to the agent, enabling them to carry out specific acts on behalf of the principal. The primary purpose of this instrument is to empower the agent to act in the name of the principal, and the principal also undertakes to validate and rectify all actions and transactions performed by the agent under the authority granted by the Power of Attorney.

It is essential to recognize that a Power of Attorney is limited to conferring only those powers explicitly outlined within the document. The agent is bound by the terms specified in the instrument and is prohibited from exceeding or deviating from these stipulated conditions. The principal retains control over the scope and extent of authority granted to the agent, ensuring that the agent operates strictly within the defined parameters of the Power of Attorney.

Registration of Power of Attorney: 

When a Power of Attorney is executed to handle financial matters, certain legal requirements must be adhered to. Specifically, the document should be attested by two witnesses, and its registration with the Concerned Registrar is mandatory. This additional step helps ensure the legality and validity of the Power of Attorney, especially when it involves transactions or decisions related to financial affairs. Registration with the relevant authorities adds a layer of formality and authenticity to the document, providing a recognized and legally sound basis for the agent to act on behalf of the principal in financial matters. It’s crucial to follow these procedures to comply with the applicable legal standards and to enhance the document’s legal standing.

Challenge to Power of Attorney:

The statement “Power of Attorney can only be challenged by the principal and not by the third party” is generally accurate in many legal jurisdictions. A Power of Attorney is a legal document that grants authority to an agent to act on behalf of the principal. The relationship established by a Power of Attorney is a private agreement between the principal and the agent.

In most cases, third parties are expected to rely on the apparent authority granted by a valid Power of Attorney and are not typically allowed to challenge or question the authority unless there are specific reasons to suspect fraud, forgery, or incapacity of the principal. If a third party believes that the Power of Attorney is not genuine or that the agent is exceeding their authority, they may request verification or clarification from the principal or seek legal advice.

Use of Power of Attorney:

Indeed, a Power of Attorney is a versatile legal instrument that can be utilized for various purposes. Some of the common uses of a Power of Attorney include:

1. Transfer of Property: The principal can empower an agent to handle property transactions on their behalf, such as buying, selling, or managing real estate.

2. Purchase of Business: A Power of Attorney can be employed to authorize an agent to act on behalf of the principal in buying or managing a business.

3. Making a Contract: The principal can grant authority to the agent to enter into contracts or agreements on their behalf.

4. Representation in Court: In legal matters, a Power of Attorney can allow an agent to represent the principal in court proceedings, including litigation or other legal actions.

5. Transfer of Inheritance Shares: The principal can use a Power of Attorney to authorize an agent to handle the transfer or management of inheritance shares.

These are just a few examples, and the specific powers granted in a Power of Attorney can be tailored to meet the unique needs and preferences of the principal. It’s important to clearly define and specify the powers granted in the document to ensure that the agent acts within the intended scope and purpose.

Power of Attorney Executed in Foreign Country:

A Power of Attorney executed in a foreign jurisdiction lacks evidentiary validity unless it undergoes attestation by the Pakistan Embassy or Consulate in that specific country, in accordance with the mandatory legal requirements. The execution of the Power of Attorney abroad is permissible in the presence of two witnesses, and subsequent attestation by the Pakistan Embassy becomes a crucial step in validating the document. Following this, the documents are sent via courier services and may undergo further attestation from the Ministry of Foreign Affairs’ office in Pakistan.

Additionally, it is noteworthy that an Apostille Certificate is now recognized and accepted in Pakistan, providing an alternative avenue for the authentication of international legal documents.

Be aware of Fraud which execution Power of Attorney:

It is highly advisable to engage a qualified lawyer when drafting a Power of Attorney, as they alone possess the expertise to safeguard your legal rights effectively. It is essential to grant specific powers to the attorney or agent for precise purposes. Even in the case of a general Power of Attorney, it is crucial to delineate specific powers with detailed descriptions, and the agent should be prohibited from selling the property to their friends or family members. Clear instructions should be provided to the attorney or agent, emphasizing that all payments must be directly deposited into the principal’s designated bank accounts by the buyer.

Revocation of Power of Attorney:

A principal who has granted a Power of Attorney retains the right to revoke or cancel it at any time. Alternatively, the Power of Attorney may become defective upon reaching its specified expiry or completion date, as outlined in the terms of the document. Additionally, the Power of Attorney is automatically considered null and void upon the death of the principal. These provisions allow the principal to maintain control over the duration and validity of the Power of Attorney, ensuring that it aligns with their intentions and circumstances.

AFFIDAVIT :

An affidavit is a written declaration made under oath by an individual, either to confirm or refute statements in favor of themselves or another person. This is done before one or more authorized individuals who have the capacity to administer such oaths, contributing to the discovery and promotion of truth and justice.

The contents of an affidavit include specific details about the deponent, such as their particulars, address, and the date and location of its execution. To validate its authenticity, the affidavit must be attested by an Oath Commissioner, bearing their official seal and stamp, duly authorized by the government.

An affidavit serves as a straightforward means to provide testimony or assurance before any court or other governmental institution. Its sworn nature adds a level of credibility to the statements made within, making it a recognized and accepted legal instrument.