An irrevocable power of attorney is a document that is issued for the purpose of execution, as well as ensuring the fulfillment of obligations by a representative. It is characterized by the fact that it cannot be canceled in any way, except for the expiration of its validity period or the onset of certain circumstances provided for in the text of the document.
Description
What is such a document? An irrevocable power of attorney is a formal agreement drawn up which cannot be terminated until it expires.
This document has one key feature, which is that it cannot be applied in different fields of activity. In other words, she has a purely targeted direction. The civil legislation of our country provides for two fundamental models in the framework of the fulfillment of such an obligation:
- The first model involves two participants in the legal relationship - the represented and the representative.
- The second extends its obligations to the third party and the represented entity, from which the representative acts.
In any case, an irrevocable power of attorney is an official document. Such an agreement must be certified strictly by a notary.
Power of attorney under civil law
This document is issued to a trusted person by the principal in order to ensure obligations related to doing business. As previously noted, the main feature of such a paper is that a person cannot cancel it before the expiration of the validity period. It can only be canceled in cases provided for in this agreement.
An irrevocable power of attorney is a paper (an example of filling out this document can be found below), which is issued to any person selected by the principal. Legal entities and entrepreneurs will be able to issue paper in order to secure or fulfill specific obligations that are related to entrepreneurial activity. Current legislation does not establish restrictions on the duration of the agreement. But given that it is difficult to annul it, the determination of the period of validity should be taken with utmost responsibility.
An irrevocable power of attorney in civil law was first introduced into legal practice six years ago. This was done in order to regulate the actions of persons capable of representing other subjects of legal relations on the basis of a concluded document. Consider the requirements for the provision of this document. The sample irrevocable power of attorney presented in the photo below will help to arrange everything correctly.
Terms of issue
Such paper may be issued to absolutely any representative whom the principal considers competent for this. According to the article of the Civil Code, the powers vested in an individual on the basis of this document will not be able to be transferred to another person, unless this is provided for by the terms of the agreement. Thus, an irrevocable power of attorney acts as a special paper issued to a specific person without the possibility of a transfer of authority.
Terms of use
As part of the method of ensuring the fulfillment of legal obligations, an irrevocable power of attorney can be used exclusively for business relations. True, it can be applied in conditions that are associated with the implementation of entrepreneurial activity, for example, in the circumstances of joint-stock company management.
Examples of irrevocable power of attorney:
- The seller to the buyer or his representative can issue such a document, which will provide the right to export the goods sold from the warehouse.
- The use of this tool will help to avoid asserting in court the right not to charge VAT on the deposit amount, while ensuring that the tenant fulfills his obligations to conclude a lease agreement.
Do not be mistaken that such a document can only be issued directly by a person who is engaged in entrepreneurship. In real life, not all participants in a joint-stock company are entrepreneurs, but they have the right to issue a power of attorney.
Irrevocable power of attorney and trust
Experts advise using the described official paper only for any one-time actions, as well as transactions with predetermined conditions. Only in this case, it will become the most secure.
It is also worth noting that the transfer of irrevocable documents is unacceptable. If such conditions are recorded in the paper, then the authorized person has the right to transfer his authority.
Where to apply
An irrevocable power of attorney issued by an individual or organization has a certain direction. It cannot be used in all fields of activity and in any relationship. A document is issued only if the obligation is associated with the conduct of business. Within a sphere that is not related to business, persons cannot draw up this paper. The status of the represented citizens and information about their state registration are usually indicated in the text of the document itself.
Entrepreneurs should be responsible for issuing irrevocable powers of attorney, since such a process entails significant legal risk. The trustee may perform legally significant manipulations on behalf of the principal. In some situations, this may be contrary to the will of the latter. The advantages of a document of this type of business relationship are as follows:
- Respect for the interests and rights of each of the parties to civil relations.
- Control over the overall performance of existing obligations.
Entrepreneurs and institutions can trust agents to transfer property for a specific period of time without a civil legal transaction.
What current legislation reports
An irrevocable power of attorney in civil law is governed by Article No. 188. This document provides the following:
- Participants in civil relations can become legal entities and individual entrepreneurs.
- An irrevocable power of attorney, as a rule, terminates after the expiration of the period specified in the document, or in the situations that are provided for in it.
- Irrevocable powers of attorney must be notarized, otherwise they will be considered invalid.
During the preparation of the paper, it must be indicated in its text that it cannot be canceled until the expiration of its validity. Cancellation is possible only in cases specified in the document. Next, we consider the main subtleties of the contents of this agreement.
Features of the preparation of the document
An irrevocable power of attorney in the Civil Code does not have the form established by Russian legislation.
For the paper to become legal, it must indicate the following:
- The name of the legal document and the purpose of its actual issuance.
- Date of compilation (from this moment the power of attorney enters into force).
- Principal Information.
- A list of actions that a proxy can subsequently take.
- The list of cases upon which the document may be canceled.
- Duration of the agreement.
- Signature of attorney and principal.
- A notarial inscription from a notary.
Now we find out whether it will be possible to annul this agreement if necessary.
Is it possible to cancel such a document
As indicated above, an irrevocable power of attorney can be canceled only if there are good reasons for this. Even within the framework of the judicial system, it can be very difficult to seek its repeal. The main reasons for terminating the agreement are the following:
- The end of the period specified in the power of attorney.
- Abuse of a trusted citizen by the authority granted to him to the detriment of the actual principal.
- Termination of obligations stipulating the need to issue an agreement.
- Other reasons indicated by the principal in the text of such a document.
Unfortunately, the irrevocable paper described in civil law may have certain problems of legal regulation. Because of this, it may not be functional enough. This is largely due to significant risks for the person whose interests are represented. It is recommended to use the type of agreement in question only for one-time transactions and actions, the terms of which are determined in advance.