A Power of Attorney is a document usually but not always necessarily under seal whereby a person (donor) authorizes another person (the donee) who is called his attorney to do in the stead of the donor anything which the donor can do lawfully spelt out in the power of attorney. In other words, is a formal legal instrument by which a person called the donor appoints the donee to perform certain lawful acts on behalf of the donor. UDE V NWARA

A power of attorney given to EXECUTE a DEED must by a DEED. See ABINA V FARHAT. Power of attorney is created by DEED when is under SEAL.

A power of attorney is created by DEED POLL because it is created and executed by one party, which is the DONOR.

Features of Power Of Attorney:
• It is an instrument of delegation. UDE V NWARA
• It does not transfer interest in land
• It is usually executed by one party (DONOR). That is, it is not inter parties
• Power of attorney is generally revocable unless it is expressed to be irrevocable
• No special mode of creation except it authorises the attorney to execute a deed
• A POA is not an instrument of transfer of title to land and cannot on its own and without more transfer valid title to land. UDE V NWARA;

Power Of Attorney is strictly and exhaustively construed. See NBA v ITEOGU. That is, on the question of the construction of a power of attorney, a power of attorney is strictly and exhaustively construed.

Differences between Power of Attorney and Contract for Sale of Land or conveyance:

  1. POA does not transfer interest in land, unlike conveyance/formal contract for sale of land
  2. POA is usually executed by one party, unlike conveyance/formal contract of sale
  3. POA need not be exchanged to be valid, while in contract of sale exchange is mandatory unless both parties are represented by the same solicitor.
  4. Consideration is not mandatory in POA, unlike contract for sale of land.
  5. POA may not require Governor's consent since no interest is transferred, while conveyance requires consent since it involves transfer of legal interest.

Particulars of Information required to draft Power of Attorney:

  • Particulars of the donor.
  • Particulars of the donee
  • Particulars of the attesting witnesses
  • Particulars of the property involved
  • Purpose of the POA and the powers to be donated
  • Whether or not the POA is given for valuable consideration
  • Whether or not the of POA shall be irrevocable
  • Duration/period of the irrevocability
  • Status of the donor
  • Extent and scope of powers donated
  • Where the power of attorney is to be used.

Uses of Power of Attorney:-

  • Buying and selling land on behalf of the donor
  • Collecting money on behalf of the donor
  • Receiving rates, rents on behalf of the donor
  • Prosecuting cases in court, except the defence in criminal cases. The accused cannot authorize another to stand for him.

Reasons for power of attorney

  • Unavailability of the donor
  • Ill-health or other physical impairment making it difficult for the donor to run his affairs
  • Where the expert skill of the donee is required
  • Maybe required where a mortgage is by sub demise in CA states.
  • Secure interest of a purchaser pending the perfection of title of purchase.