What is letter of attorney?
Letter of attorney is a letter that gives the authority to an agent to act on the behalf of the person who has signed the letter of attorney, that is the principal. The agent has all the powers that have been granted by the principal and can carry out all kinds of trades on behalf of the principal. The letter of attorney loses its validity if the principal dies or if the principal is incapacitated. Also, the principal has the right to revoke the powers given to the agent at any point of time.
The letter of attorney is an important legal document and should be issued to very reliable person only. It should have all the information of the principal, the agent and the company stated clearly. The functions of the agent should be mentioned in detail and in a manner that nothing is left to presumption. No portion of the letter should be unspecified.
Contents of letter of attorney
The letter of attorney must have the name of the company, name of the principal and the name of the agent mentioned clearly along with the address.
The terms and conditions must be clearly written and that too in detail.
The duties and the power of the agent must be mentioned clearly and in detail.
The signature of the principal and the agent should be done at the end of the document only after both the parties have read and understood all the terms and conditions and in front of notary public.