Power of attorney is a legal instrument through which one person authorizes another to acts on his behalf as an agent. It is a legal instrument that empowers the agent to do and execute certain acts on behalf of the principal.
There are various definitions of power attorney under different acts, such as the Bombay Stamp Act, defines it as "any instrument empowering a person to act for and in the name of the person executing it and includes an instrument by which a person a not being a legal practitioner is authorized to appear on behalf of any party in proceedings before any court tribunal or authority.” The Indian Stamp Act defines it as “an instrument empowering any specific person to act for the one executing the power of attorney.”
Even though there are several definitions, the basic purpose of the document remains the same i.e. to establish the relationship of agency. This document is governed as per the Indian Contracts Act. There are mainly two kinds of power of attorney:
General
Specific.
If the power of attorney is restricted to a specific matter or field then it falls under the second category else, it will be called a general power of attorney. The power of attorney becomes operative as soon as it is signed. It is used under various fields for example:
To enter into a certain contract on behalf of the principal
To sell, exchange collect rent or grant or even borrow and mortgage.
To withdraw or deposit the money into accounts
To deposit or withdraw the funds acquire
To sell any share, stock, or securities bonds of another kind
To deliver or make assignments of shares, stocks, or other securities.
The use of power of attorney is not limited to the above-mentioned purposes; it is widely used in real estate, tax returns, and insurance, bank accounts, contracts, and agreement, etc.
There are certain basic principles to follow while executing the power of attorney:
Power of attorney once made and signed, should be strictly construed with
If the power of attorney is to manage the immovable property it cannot be extended to the movable property for example principles ornaments.
Any fraud committed by the agent does not bind the principal.
The agent through his acts cannot bind the principle for more than what he is liable to do under the power of attorney
Any act done by the agent in excess of his powers as defined under the power of attorney will not bind the principal.
Power of attorney is a common legal instrument that is used to establish the relationship of agency between the principle, i.e. the one executing the power of attorney, and the agent, i.e. the person who is being appointed through the power of attorney to perform a certain task. The acts of both the principal and the agent are limited by the virtue of this document.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.