What Is a General (Full Authority) Power of Attorney?
2024-07-03
A general power of attorney (vekalat-e tam-ol-ekhtiyar) is a type of power of attorney in which the attorney-in-fact is granted authority to act in all financial and legal matters. In effect, the principal delegates all of their powers, obligations, and duties to a third party in a single instrument.
With this type of power of attorney, the principal grants the attorney-in-fact authority over all of their financial and administrative affairs in the power-of-attorney document drawn up between them, so that it is no longer necessary to issue a new or separate power of attorney for every new matter. General powers of attorney can be drawn up either officially or in an ordinary form — that is, either handwritten between the parties, or formally executed at a notary's office.
Types of General Powers of Attorney Under the Law
A general power of attorney is divided into two types based on how it is executed:
An ordinary general power of attorney is drawn up in writing between the two parties without appearing at a notary's office. An official general power of attorney is one in which the parties appear in person at a notary's office and formally execute the power-of-attorney document. It goes without saying that an official power of attorney carries greater legal weight than an ordinary one. A general power of attorney may also be granted on an irrevocable basis or on a temporary basis. If granted irrevocably, it cannot be revoked by the principal, and can only be terminated under specific circumstances such as the attorney-in-fact's resignation or death.
Scope of the Attorney-in-Fact's Authority
Even in a general power of attorney, the scope of the attorney-in-fact's authority must be specified — whether the authority to handle financial, administrative, legal, or other matters — and even the authorities or agencies before which the attorney-in-fact has the right to act must be specified in the contract. Simply using the term "general" or "full authority" is not sufficient on its own.
How Is a General Power of Attorney Terminated?
If the general power of attorney is not irrevocable, the power-of-attorney contract is terminated or voided in one of two ways:
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Revocation of the attorney-in-fact by the principal
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Resignation of the attorney-in-fact
Question: Can the attorney-in-fact grant power of attorney to someone else to carry out the matter covered by the power of attorney?
Answer: If a power-of-attorney document has been executed between the attorney-in-fact and the principal, the person designated as attorney-in-fact does not have the right to delegate the matter covered by the power of attorney to another person, unless this is expressly stated in the power-of-attorney document. If the attorney-in-fact delegates the matter to another person without the principal's permission, both the attorney-in-fact and the third party to whom the power was delegated without authorization are liable to the principal for damages.
Obligations of the Attorney-in-Fact Under a General Power of Attorney
The attorney-in-fact may not take any action that is contrary to the power-of-attorney document or contrary to the principal's interests, and is liable if such a violation occurs; the attorney-in-fact must have full regard for the principal's interests in all actions taken on the principal's behalf, and must not exceed the matters covered by the authority the principal has granted.
The attorney-in-fact must inform the principal of actions taken within the scope of the general or simple power of attorney, and if any sums are received on the principal's behalf, the attorney-in-fact must deliver them to the principal.