A General Power of Attorney Agreement is a valuable legal document that empowers individuals to manage their general affairs efficiently. It grants an attorney the authority to act on behalf of the principal. It is a powerful tool that delegates various responsibilities and decisions to the chosen representative. The principal can ensure that his affairs are managed according to his wishes, even if he becomes incapacitated. However, while drafting the general POA, both parties must ensure that the document is accurately drafted and contains all roles and responsibilities with clarity.
Roles and Responsibilities in a General Power of Attorney Dubai
Following are the roles and responsibilities of the principal and attorney:
Responsibilities of Principal
The principal is an individual who grants the power to the chosen agent. The responsibilities of a principal include:
Selecting the right agent
The foremost responsibility of the principal is to choose a trustworthy and reliable individual to act as his agent. The principal should consider it a crucial responsibility to appoint someone with the necessary skills and integrity to carry out the designated tasks. The agent should be honest, reliable, and with good judgment.
Clarifying the scope of authority
The general POA must have defined the scope of the agent’s authority. This involves specifying the powers granted, relating to any matter like financial, legal, or medical matters, and the duration of the general POA.
The principal should carefully review the POA document to understand exactly what powers they are granting to the agent. The POA can be limited to specific tasks, such as managing finances or making medical decisions, or it can be more general.
Communication
Principal must maintain an open communication with the agent. The principal should convey their wishes, preferences, and any specific instructions to ensure that the agent fully understands their expectations.
Responsibilities of Agent
The agent is an individual who receives the power from the principal. The agent receives responsibilities and must act in the best interest of the principal. The responsibilities of an agent include:
Fiduciary Duty
The agent is entrusted with a fiduciary duty to act honestly, responsibly, and in the best interest of the principal. They must avoid any conflicts of interest and make decisions that align with the wishes of the principal. The decisions that are based on the principal’s wishes and values must be fulfilled, even if it means going against the agent’s own personal beliefs.
Record Keeping
Maintaining accurate records of all transactions and decisions made on behalf of the principal is crucial. This includes financial transactions, legal matters, and any other activities specified in the POA.
Regular Reporting
The agent should provide regular updates to the principal in a responsible way. This ensures transparency in the process and allows the principal to stay informed about the timely actions of the agent and his decisions.
Legal Considerations During General Power of Attorney Dubai
There are some legal considerations to be fulfilled by both principal and agent.
Termination Clause
A well-drafted General Power of Attorney Agreement should include the termination clause of the agent. The document must clearly outline the circumstances under which the POA will end. POA can be revoked under principal’s revocation or incapacity.
Legal Compliance
Both the principal and the agent must adhere to relevant laws and regulations. Understanding the legal implications and responsibilities associated with a POA is essential to avoid any legal complications.
Limitations of A Power of Attorney
General POA is only valid for a certain period. If a period is not stated, the general POA is assumed to be legal for two years from the date of execution or when the assigned tasks are completed. The agent cannot act beyond the validity period mentioned in the POA. Principal can renew the POA when it expires.
General POA can only grant the authority that is explicitly mentioned in the document. If the agent is authorized to sell a property on behalf of the principal, then the agent cannot make any other financial decisions and transactions but only sell the property under the conditions mentioned in the document. The principal can also revoke the POA by signing a revocation form.
It cannot be transferred. It means the POA is only valid for the specific individual referred in the document. The agent can decline the document but cannot delegate the authority to another person.
It is only valid under the authority of the principal. It means the person must be mentally capacitated to understand the implications of granting a POA. The principal should not be influenced or coerced to give the authority.General POA cannot be used for activities that are illegal, immoral and against government policy.