Power of attorney: Legal liabilities, formalities and issues under Pakistani Civil laws perspective.

Power of attorney: Legal liabilities, formalities and issues under Pakistani administration of justice system perspective..مختار نامہ سے کیا مراد ہے ؟ قانون میں اس کی کیا تعریف اور اہمیت ہے ؟ مختار نامہ کی کتنی اقسام ہیں اور ان میں بنیادی فرق کیا ہے ؟ کن حالات میں ایک مختار نامہ کو منسوخ کیا جا سکتا ہے ؟ مکمل معلوماتی پوسٹ بمعہ اہم متعلقہ قانونی اصطلاحات 🔴POWER OF ATTORNEY Power of attorney refers to the granting of authority to one individual to make decisions for, and to act on behalf of, another individual. Power of attorney maybe granted for a wide variety of situations, and may be assigned for one specific purpose, or to allow the individual given power of attorney to handle all of the principle’s personal and financial affairs. The laws governing power of attorney vary by jurisdiction. To explore this concept, consider the following power of attorney definition. 🔵Definition of Power of Attorney Noun : 1. The authority given to a person or entity to act on behalf of another person or entity in legal or financial matters. 2. A legal document giving one person or entity to act on behalf of another person or entity in legal, financial, or personal matters. 👉Origin 1740-1750 English common law 🔵What is Power of Attorney A power of attorney is a legal document in which one person, called the “principal,” or “grantor,” gives another person, called the “attorney-in-fact,” or “agent,” legal authority to act on the principal’s behalf. In some jurisdictions, verbal authority may be recognized in some circumstances, though such authorization to act may be difficult to prove if challenged. When an individual names an attorney-in-fact, he may specify how much power the agent has, or over which specific issues the agent is given authority. While a power of attorney is commonly used to enable an agent to care for an individual’s affairs when he has become mentally incapacitated, this device may be helpful in any number of situations. 🔵What is an Attorney-in-Fact In some jurisdictions, the individual given authority to act on behalf of the principal is called an “attorney-in-fact.” An attorney-in-fact is not an attorney in a legal sense, but acts as the principal’s agent. When an attorney-in-fact is appointed, he has a fiduciary duty to be completely honest in his dealings with, and on behalf of, the principal. 🔵How is an Attorney-in-Fact Paid In some cases, an attorney-in-fact may be paid for his services. If this is the case, this agreement must be made in a separate contract, and kept private. In the event the principal fails to provide payment as agreed, the contract can be enforced by a court. 🔵Types of Power of Attorney Powers of attorney are used in a variety of situations in which an individual is unable to handle all of his own affairs, whether during a specific period of time, or over a specific transaction. This might occur when the principal is traveling, or is engaging in business far from home. This might also occur if the principal is temporarily mentally or physically unable to take care of his affairs. There are several types of power of attorney, each of which is used in certain specific situations. 🔵General Power of Attorney A general power of attorney provides the named agent with broad authority when it comes to making decisions on the behalf of the principal. This power can include the handling of business transactions, financial management, settling legal claims, making gifts to people or organizations, purchasing life insurance for the principal, and other issues that may arise. Also referred to as a “financial power of attorney,” powers granted by a general power of attorney include: ▪ Dealing with bank transactions ▪ Managing and entering safety deposit boxes ▪ Entering into contracts ▪ Purchasing and managing real property ▪ Purchasing personal property ▪ Purchasing life insurance policies ▪ Settling legal claims ▪ Dealing with issues related to the agent’s government benefits ▪ Filing tax returns 🔵Special Power of Attorney Unlike the sweeping powers granted in a general power of attorney, only specific, limited powers are given to the named attorney-in-fact in a special power of attorney. The special power of attorney is often used to allow the agent to take care of a single transaction, or to act during a very limited time period. Special powers of attorney are commonly used in such transactions as: ▪ Buying or selling real or personal property ▪ Managing real property ▪ Engaging in transactions involving U.S. securities ▪ Collecting debts ▪ Borrowing money ▪ Managing business interests ▪ Making financial decisions ▪ Making estate planning decisions 🔵Durable Power of Attorney A regular power of attorney ends when it is no longer needed, or once the duties are fulfilled. It typically ends in the event the principal becomes incapacitated, unless certain language, referred to as a “durability clause,” is included to ensure it continues in