A power of attorney is a legal documnet whereby the individual ( “the principles “) appoints another person to manage his/her (“the agent”) to manage his/hers on his her her affairs on his/her.
The power of will set out the nature and and scope of the agents to act on behalf of the principle and can be utilised for a variety of circumstances, such as signing of legal documents, entering into contracts, opening and closing bank accounts, selling or purchasing property and instituting legal action.
A principal can cancel the power of attorney at any time but what most people are unaware of is that a power of attorney automatically lapses in certain instances, one of which is when the principle becomes mentally incapaciated, for example, has a stroke or is in a coma following an accident or acquires a mental illness.
When a power of attorney lapses or is revoked, it becomes void and the agent no longer has the power to act on the principle’s behalf. It is important to note that should the agent continue to act on the authority of a lapsed power of attorney, they may become personally liable for any damages suffered as they have no legal authority to act in these circumstances.
Should you require any further information in respect of a power of attorney, please feel free to contact us at chareen@harrismarcus.co.za