The power of attorney authorization letter is a legal document that gives another person the power to act and make decisions on behalf of someone else in accordance to the terms of the document. Usually the party being granted this authority is referred to as the ‘agent’. Some of the activities an agent can undertake include monetary transactions, property dealings and even signing cheques. When the agent acts in help of the original person his activities are binding legally to the original person.
Difference B/W Power of Attorney and Authorization letter
These two letters are very similar but the main difference comes in the scope . A letter of authority authorizes someone to act on someone’s behalf for a given specific purpose. Assignee of letter of authority should cancel the letter upon completion of tasks assigned. On the other hand power of attorney authorization letter give the assignee powers to act over a wide range of transactions.
Contents of Power of Attorney Letter
The main contents include:
- Name, signature and address of the principal.
- Name, signature and address of the agent.
- Properties and activities under the authority of the agent.
- Date of effect and termination of authority.
- Compensation to services of the agent.
- Name, signature and address of the person witnessing the signing.
Sample Power of Attorney Letter
I, (principal name) (principal’s address) being of sound mind hereby appoints (agents name) (agents address) as my one true attorney in fact to act in name, place and stead to perform the following:
a) Authority 1
b) Authority 2
The following buildings interests or rights shall be subject to the agreement :
a). XYZ building
b). XYZ tower
The Power of attorney will be on effect on this date of (Date) and will be terminated on the date (Date).
My agent will be compensated for his services as follows:
The Power of Attorney will be guided by the laws of the land of [Name]. In Witness whereof i have signed this on my own free will.
Agreed to and signed by
Subscribed and signed to in front of me on this day of (Date).
(name of witness).