Use of the Power Of Attorney: The Advantages and Disadvantages
By: Caksut | Posted: 05th May 2010
Appointing someone to handle your business matters could be a good idea. You do not have to attend company meeting in say Japan to sign documents. You are able to authorize someone to represent with the power of attorney as well that representative is capable of signing the contract for you. But for all its advantages, the power of attorney may also be a bane when not carried out the proper way and if it is granted to incompetent person.
What does a power of attorney means?
Previous to discussing about pros and cons of the power of attorney, at first you should know the concept accurately. Power of attorney is a document that authorizes someone to carry out for a certain period and affair for another person's behalf as specified on the paper. Therefore representative has authority to sign document and make decision for you. Someone who awards the power of attorney is called the principal while the person who gives authority is named as the agent or the proxy.
Use of the Power of Attorney
Power of attorney is needed in companies where executives have tight schedules that necessitate them to take a trip in several international locations in one or two days. This will likely either be physically unattainable or physically tiring. So, the power of attorney offers to elevate the burden belonging to the executives, enabling them to be more productive. Company lawyers are sometimes sent or subordinates who're trusted in making decisions and sign the contract.
Another benefit of a power of attorney is its significance in making health care decisions. In addition a power of attorney could be granted to someone, entrusting authority to refuse or allow medical care to the principal if they are not competent to make decisions for themselves. The authority includes making the decision to pull the plug in cases when only a machine is keeping the principal alive.
In addition the power of attorney is granted for someone to take care of a principal's financial portfolio. Although this is a good idea in case you're full of activity and also would like to invest your money to a professional. But money may cause people unfair. That's the one weakness of a power of attorney- giving your trust to one person only.
On the downside
Keep in mind when awarding a power of attorney to a person, essentially you are giving information to people who read the document or the contract and then you are entrusting maximum authority to sign document, come to an agreement or decline something for you. In case the agent becomes unfair, at that time all transaction they manage is susceptible to deception. That's way even though this is handy way to perform; not so many ever apply it. Entrusting authority to one person only is prone to deception although you can keep an eye on all transactions made under your name.
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Tags: pros and cons, benefit, bane, medical care, making decisions, subordinates, business matters, japan, power of attorney, tight schedules