Q&As

Does a company’s power of attorney delegating general powers to an individual enable that individual to execute a deed on behalf of the company?

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Published on LexisPSL on 24/05/2017

The following Commercial Q&A provides comprehensive and up to date legal information covering:

  • Does a company’s power of attorney delegating general powers to an individual enable that individual to execute a deed on behalf of the company?

Does a company’s power of attorney delegating general powers to an individual enable that individual to execute a deed on behalf of the company?

A power of attorney is a document by which one legal person gives another legal person the power to act on their behalf and in their name. It is a common tool for delegating power to act. It can either grant wide authority or be very specific. For an example, see our Precedent: Power of attorney for commercial transactions, which is a general power of attorney granted by a company to an individual to execute various documents and take various action on its behalf in respect of a transaction when, say, a director is not present.

One thing to consider will be the extent of the powers granted by the company to the individual. When a document is to be executed or an action carried out under a power of attorney, you should check and make sure that the necessary authority to execute the document or perform the act as set out in the power. Generally, a contract may be held unenforceable if the person executing it does not have the relevant authority. Authority is not the same as capacity to enter into a contract:

  1. capacity is concerned with whether a person recognised by law

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