Questions and Answers
Who is responsible for liability when a donee acts within the scope of the power of attorney?
What is a requirement for a power of attorney concerning family property to be valid?
Which of the following individuals lacks the capacity to be a donor?
What differentiates a general power of attorney from a specific one?
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In which situation would a power of attorney NOT be required?
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What is the primary function of a power of attorney?
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What characterizes a revocable power of attorney?
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Which of the following statements regarding powers of attorney is NOT true?
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Which of the following entities lacks the capacity to be a donee?
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What is essential for the creation of a power of attorney?
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Which aspect indicates that a power of attorney can be considered irrevocable?
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When can a power of attorney be considered irrevocable?
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In what scenario can a power of attorney be coupled with interest?
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What does not constitute a feature of a power of attorney?
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What occurs if a power of attorney is executed by both the donor and donee?
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How does the power of attorney empower the donee in legal matters?
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Which of the following statements captures the essence of a power of attorney best?
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Study Notes
Power of Attorney Overview
- A Power of Attorney (POA) allows one individual (agent) to act on behalf of another (principal).
- The donee can execute documents in their own name with the principal's authority, making these actions legally binding.
Features of a Power of Attorney
- Serves as a delegation of authority, not as a conveyance instrument.
- Exceptionally, it can be considered valid for property transactions if original intent is clear.
- Can be established for valuable consideration and may involve an interest.
- Generally, POAs are irrevocable but can be revocable based on their purpose.
- Typically executed by one party; joint execution by donor and donee is acceptable.
- The principal (donor) must be legally recognized.
- Donee incurs no liability if acting within their designated power; liability rests with the donor.
- For family property, the head of the family must execute the POA.
Creation of a Power of Attorney
- A POA can be created in writing or by deed (under seal), with written documentation being essential.
Capacity Requirements
- Donor must have legal capacity; exceptions include:
- Infants (except married minors)
- Undischarged bankrupts
- Insane individuals
- Unincorporated entities
- Companies in liquidation or winding up
- Enemy aliens
- Donees must also have legal capacity; restrictions include:
- Partnership firms
- Insane individuals
- Infants
- Unincorporated entities
- Undischarged bankrupts
- Non-juristic persons
Types of Power of Attorney
-
General vs. Specific:
- General POAs provide broad powers; specific POAs focus on particular actions, like managing rental properties.
-
Revocable vs. Irrevocable:
- Revocable POAs can be terminated by the donor anytime before exercise; irrevocable POAs are often tied to interest or time-limited engagements.
Appointment and Functionality
- Donors may appoint multiple attorneys via a single document, and appointing does not restrict the donor from also exercising their powers.
- Situations necessitating a POA include:
- Donor's unavailability to manage affairs.
- Difficulties due to health issues or disabilities.
- Protection of interests in real estate transactions.
Legal Precedents
- Various cases (e.g., Ude v Nwara, Chime v Chime) demonstrate the principles surrounding POA validity and execution rights.
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Test your understanding of Power of Attorney (POA) concepts and legal implications with this quiz. Explore key cases such as National Bank of Nigeria Ltd v Korban Brothers and more. Ideal for law students and legal professionals.