power of attorney can be made irrevocable if the document includes a provision that specifically states that the principal gives up the right of revocation or otherwise indicates that the power is irrevocable.
Irrevocable power of attorney
Hi I would like to execute an IRREVOCABLE POWER OF ATTORNEY of my share in a partnership firm to a third person, I DON'T want to mention any money transactions in that A. Is a statement or condition or reason mandatory to be specified to make it irrevocable? B. If the word "irrevocable" is mentioned without any other reason, is that fine? C. If reson is mandatory, what reasons we can write (apart from money transactions)?
Asked 7 years ago in Property Law
Religion: Hindu
First answer received in 10 minutes.
Lawyers are available now to answer your questions.
11 Answers
.1. specific clause has.to mentioned that the POA is irrevocable.
2. Yes it is fine.
3. It is not necessary to mention any reason.
Hi, a power of attorney can be revoked even if you mentioned the word irrevocable , therefore it is irrelevant to mention it in the attorney
1. A POA if not coupled with interest can be revoked by the maker at his will and mere using the word irrevocable is of no use.
2. Yes, no reason is required to be cited.
3. same as above.
Firslty, as per the information mentioned in the present query, makes it clear that you have an idea about the law of POA and its revocation.
Secondly, any POA can be revoked by the executor of the same at any time.
Thirdly, but, if the above mention clause has beeen mentioned in the POA then it may be difficult to revoke it.
Fourhtly, though still there are case laws which say that you may do even after that revoke it subject to the submissions plus situation only.
1. yes
2. No, a reason has to be mentioned.
3. The reason as to why the POA is being given, in itself will suffice.
Regards
Hi
In general, a irrevocable power of attorney is given only when there is monetary consideration between the principal (you) and the third person (Agent) .
1) If there is any monetary consideration between the principal (you) and third person(agent) then the power of attorney is Irrevocable u/s 202 of the Contract Act. Section 202 of Contract Act lays down the rule that an authority coupled with interest is irrevocable. S. 202 of the Contract Act states that "where the agent has himself an interest in the property which forms the subject matter of the agency, the agency cannot, in the absence of an express contract, be terminated to the prejudice of such interest.
1a) To make the authority irrevocable, the agent must have an interest in the property which forms the subject matter of the agency.
1b) Where the agent has himself an interest in the property which forms the subject matter of the agency, the agency cannot, in the absence of any express contract, be terminated to the prejudice of such interest.
B) The mere fact that IRREVOCABLE is mentioned in a power of attorney, does not make it irrevocable. Just ensure that the power of attorney does not create any independent interest or claim for the third party (either from you or from the partnership firm). examples of independent interest from power of attorney includes : Commission, income from partnership firm , draw monies from partnership for THIRD PARTY (Agent's) own use etc.
C) The word irrevocable is not mandatory at all in a power of attorney. Whether the power of attorney is irrevocable or not is to be understood only from the contents of the power of attorney document.
D) In order to ensure that the power of attorney is irrevocable, you need to ensure that
a) that the power of attorney is NOT given to secure the interest of the third party (instead power of attorney should be given to secure your interest in your absence).
b) Power of attorney is NOT given for a valuable consideration (i.e your attorney holder cannot claim any remuneration, commission from income of partnership firm)
c) That there is NO proprietary interest created in favour of the third party
d) That the Power of attorney holder is granted the power as gratitude and that there is NO obligation owed by you to the Third person (Agent) .
Hope this information is useful.
Dear Sir
To avoid future complications only reasons are required. If you feel there will be no consequences then go ahead with it.
Dear Client,
No particular reason required, it can be executed to act on your behalf.
Yes.
Just mention, you are authorizing Mr. x to act on your behalf, due to your engagement in some other work.
there is no such thing that if money is involved in a power of attorney then it necessarily has to be irrevocable
even if money is not involved, you can make the powers granted in the POA irrevocable
You may create an irrevocable POA, you don't have to mention reason for it.
However without clubbing it with any financial implication the POA is revocable.
Until you don't revoke it, the same will remain in force.
