Page 134 - DMGT102_MERCANTILE_LAWS_I

Mercantile Laws-I

Notes (iii) A directs B, his agent, to pay certain money to C. A dies and D takes out probate to his
will. B, after A’s death, but before hearing of it, pays the money to C. The payment is good
as against D, the executor.
3. The termination of the authority of agent causes the termination of authority of all sub-
agents appointed by him.

9.8 Powers of Attorney

A power of attorney is defined by Sec.2(21) of the Stamp Act, as including “any instrument not
chargeable with a fee under the law relating to court fees for the time being in force,” which
empowers “a specified person to act for and in the name of the person executing it”. It is the

Powers of Attorney Act, 1882, which deals with the subject, but does not define it. In common
parlance, a power of attorney is an instrument or a deed by which a person is empowered to act
for and in the name of the person executing it. The person executing the deed is known as the
Principal or donor and the one in whose favour it is executed is the agent, or the power agent or
the power of attorney agent.

9.8.1 A Power of Attorney may be Special or General

If the deed conferring power by one to another relates to one single transaction, it is known as
special power of attorney. If the deed conferring power relates to several transactions it is general
power of attorney.

9.8.2 Registration

As a general rule, registration of power of attorney is not necessary but if it authorises the donee to

recover the rents of an immovable property of the donor for the donee’s benefit, it would require
registration. And so also a power creating a charge in favour of the donee upon an immovable
property referred to therein.
Further Sec.32 (c) of the Registration Act, 1908, requires that where a document is presented for
registration by the agent of a person entitled to present it for registration, such agent must be
duly authorised by power of attorney executed and authenticated in manner as mentioned in
Sec.33 of the Act.
Such a power of attorney is to be executed before and authenticated by a registrar or sub-registrar.
Unregistered power executed in a foreign country before a notary public can be used by the agent
for presentation of document for registration. The power of attorney, however, executed before
a notary public in India will not enable the agent to present any document for registration under
the Registration Act, 1908.
The power of attorney is required to be engrossed on non-judicial stamp paper. The amount of
stamp duty varies with different types of powers as described in the Stamp Act and varies among
different States of India. Sec.4 of the Power of Attorney Act, 1882 provides that the original deed
of power can be deposited in the High Court in whose jurisdiction the principal resides and a

certified copy of the deed can be obtained from the High Court. Such certified copies are equal to

originals and are binding on all.

Task P employs A as his agent to sell 100 bags of sugar and directs him to sell at a price
not less than ` 120 per bag. A sells the entire quantity at ` 110 per bag whereas the market
rate on the date of sale was ` 115 per bag. Is P entitled to any damages and if so, at what
rate?

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