7 junio, 2024

Letter of power: characteristics, types, functions, parts, uses

A letter of power It is a private document where a person authorizes a third party to make decisions or actions on a particular aspect. It is a text where an individual delegates authority to a specific person with the aim of representing him in certain legal or administrative matters.

In other words, power of attorneys are documents that allow an individual to act on behalf of another person, be it a friend, associate, family member, co-worker, partner, or any acquaintance. These documents are widely used, for example, by business owners with the aim of allowing their employees to withdraw a check in their name or sign in their absence.

Likewise, this type of document usually uses an informal style that does not necessarily require the presence of a lawyer and does not have to be notarized to be valid. It only demands the presence of two witnesses who sign the text, which may vary depending on the regulations of the country of origin of the signatories.

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What should a power of attorney include?

Despite the simplicity of the document, it is necessary to carefully specify the implications or functions that are authorized in the letter, in order to avoid misunderstandings or inconveniences in the future.

For this same reason, it is recommended to clearly define the degrees that are granted to the bearer of the document and choose a responsible person as representative.

In conclusion, in a letter of power it must be well specified who or who will assume the power; The powers that will be granted to these people must also be delimited, together with the signature of the participants.

It is important that these signatures are identical to those on other legal documents, since a signature functions as an individual’s seal and changing it is considered a crime. Also, an incorrect signature instantly invalidates the document that was drafted.

Although these documents do not require the presence or direct intervention of a lawyer, it is usually recommended that the grantor seek legal advice to guide him during the process of preparing the letter. In this way, future complications are avoided and the transaction is expedited.

Characteristics of power cards

Power cards are characterized by:

– Use simple language that does not require writing by a lawyer.

– Describe in detail the representation that the agent will exercise, together with the duration of this power.

– Specify who grants the authority and who or who will be the proxies, placing their respective names, identification data (for example, identity card) and signatures.

– It is a limited document, which means that the attorney cannot exercise other actions that have not been placed in the text.

– The person granting the power can at any time decide on any element specified in the letter. This means that, although the agent can make decisions regarding a matter, the person represented continues to maintain control over said matter.

– The principal has the right to close the letter whenever he wishes, even if it does not coincide with the term specified in the letter.

Types of power of attorney

These documents can be classified in two ways: according to their purpose and according to their scope or temporal duration.

According to its purpose

– Letter of power of attorney

This letter is used to accredit a person as proxy for the activities of another individual in terms of a legal nature. It is a model widely used by companies and institutions, since it allows you to delegate certain tasks to other people; it also allows representatives to execute some specific decisions on behalf of the company.

Power of attorney letters can be revoked, although the validity can also be unlimited, depending on the needs of the institution or person issuing it.

– Administrative power of attorney

The administrative power of attorney allows a representative to carry out administrative and commercial procedures; it also offers the agent the opportunity to do business on behalf of the represented person.

These letters allow a third party to close or open bank accounts, apply for mortgages or loans, and sell or buy property. It is one of the most used documents, but also the one with the highest risk. This is because, if the correct agent is not selected, it can cause the principal to get into debt or other financial problems.

– Simple power of attorney

It is a simple document in which the attorney delegates a person to be in charge of carrying out procedures or procedures that the represented person cannot do. In this case, the representative can act in a general or limited way depending on the needs of the person.

Thanks to these procedures, people can choose someone to renew their circulation card, change license plates, register, among other vehicular aspects. It also allows the agent to carry out government procedures related to intellectual properties.

– Letter of judicial power

The letter of judicial power, as its name indicates, is in charge of delegating strictly judicial problems or activities. This type of document is used mainly by lawyers, who represent their clients in the case of lawsuits, complaints or other offices related to legal dependencies.

These letters are characterized by their strictly temporary duration, since the power of attorney is revoked as soon as the judicial process is completed.

According to its amplitude or duration

– General letters of power

These letters allow the agent to comply with different procedures for an indeterminate period of time. Therefore, the representative can handle the transactions and/or documents without a specific time limit.

– Specific Power Letters

These letters are written with the objective of fulfilling a series of particular matters in a determined period of time. For this reason, the validity of this document ends when the procedure or activity has been completed.

functions

Power of attorneys are instruments that allow an individual to appoint a trusted person as their proxy or representative in the event that the principal cannot be present, whether for travel, health, or business reasons, among others.

These documents are very useful in today’s modern societies, since they allow better time management and a more adequate distribution of tasks. Likewise, it is a fundamental tool that allows the signatories to establish legal terms that protect the interests of both.

parts or structure

Every power of attorney must have:

– Place and date of issuance of the letter.

– Title of the document, which is usually “power of attorney”.

– Identification of the principal or grantor, where the name and identity card or other document that serves to identify it is usually specified. Some people add other data such as marital status or profession.

– Identification of the representative or proxy, where the same data that is requested of the represented person is placed.

– Description of the power granted, which refers to the activities or decisions that the principal is delegating to the agent. This indication must be detailed and easy to understand.

– Duration date of the letter (if it is unlimited, it must also be placed).

– Signature of the parties, together with the signature of the two witnesses present.

Power of attorney uses

Generally, power cards are used to:

– Certain banking procedures such as opening or closing accounts.

– Cash or withdraw checks.

– Procedures related to vehicles, such as change of registration, ownership, address, circulation card, among others.

– Procedures related to both physical (real estate) and intellectual (copyright) property.

– Withdraw parcels sent by mail.

– Delegate work tasks to subordinates, such as secretaries.

Example of a simple power of attorney

Mexico City, February 17, 2020.

Letter of power

By means of the present, I, María Carolina Palacios, with identity card 24,346,890, authorize Mr. Carlos Seijas Rondón, with identity card 23,465,456 to:

– Collect all documents related to my academic record.

– Request data or information about my academic record for this semester and the following ones.

– Manage the necessary procedures that are related to said documents.

– Collect all my unofficial documentation.

This power of attorney is valid from February 18, 2020 until February 18, 2021. Copies of the identity cards of all signatories are attached to this document.

Grantor Signature:

Signature of attorney:

Signature of witness 1:

Signature of witness 2:

References

SA (2019) doWhat is a power of attorney? Types of power of attorney and examples. Retrieved on February 7, 2020 from cartapoder.info
SA (nd) Example of power of attorney. Retrieved on February 7, 2020 from ejemplode.com
Tovar, P. (sf) Letter of power: characteristics, functions and model. Retrieved on February 7, 2020 from Lifer.com
Ucha, F. (2010) Definition of power of attorney. Retrieved on February 7, 2020 from definicionabc.com
SA (nd) Example of power of attorney. Retrieved on February 7, 2020 from up.edu.mx
SA (2019) Simple power of attorney for procedures. Retrieved on February 7, 2020 from modelo-carta.com
Bilski, E. (sf) Power of attorney function. Retrieved on February 7, 2020 from function.info

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