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Find How Power Of Attorney (PoA) Is Different From Letter Of Authority (LoA)?

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If you are going abroad and want someone else to handle all your personal affairs like business and other legal matters then you need to authorize that person for the same. You can do this by handed over a written document which can either be a ‘Power Of Attorney’ or a ‘Letter of Authority’. But here comes the very important question ‘ What is the difference between Power Of Attorney (PoA) and Letter Of Authority (LoA)?’. So let have a look what this documents are and which one is useful to you for your need :-

LOA vs POA

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What Is Letter Of Authority (LoA)?

Letter of Authority (LoA) is a letter which authorizes one to act on someone’s behalf for some specific purposes. This written document offers authority but limited for some defined purpose or some other small works on behalf of the original person. It is not only limited for some specific purposes but also offers small powers which let the holder perform some regular tasks only like routine banking transactions, submission or collection of some important documents etc..

  • Holder of Letter of Authority should act on behalf of the assignee under the limits of the authorities delegated to him but acting beyond limits only in case of some emergency can save him from legal actions.
  • Assignee of Letter Of Authority should cancel the agreement on completion of the task for which the authority has been assigned and intimate the same to the third party involved in the transaction.
What Is Power Of Attorney (PoA)?

Power of Attorney (PoA) is a legal document which empowers one to act on someone’s behalf to take care of variety of transactions. This written document offers authority to handle major transactions on behalf of the original person. Which means one having power of attorney can perform major activities like signing cheques, maintaining bank locker, property dealings, monetary decisions etc.. All the activities and decisions taken by attorney are legally binds the original person. You can get POA registered in case you want to authorize attorney for bigger dealing like property dealing etc.

    • Holder of Power of Attorney should act on behalf of someone under the limits of the authorities delegated to him but acting beyond limits only in case of some emergency can save him from legal actions.
    • Assignee of Power Of Attorney should cancel the agreement on completion of the task for which the authority has been assigned and intimate the same to the third party involved in the transaction. In case of registered POA, the assignee also have to get cancellation document registered.

 

Power Of Attorney Can be of two types i.e General or specific:-

General Power Of Attorney :-  This authorizes one to handle almost all the transactions on behalf of the original person. It contains a complete list of activities for which original person empowers attorney to act on his behalf.

Special Power Of Attorney :- This authorizes one to handle only specific transactions on behalf of the original person. For Example, Mr X authorizes Mr Y via Power of Attorney to settle a property on his behalf.

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