Earlier the power of attorney was signed by the principle only, however now days the power of attorney is signed by the principal and accepted by the agent. The validity of power of attorney is up to the term for which it is issued but in case there is no fixed term mentioned in the power of attorney then it is valid until it is revoked by the principal or till the time the principal is alive.
A grant of power attorney is essentially governed by Chapter X of the Indian Contract Act. By reason of a deed of power of attorney, an agent is formally appointed to act for the principal in one transaction or a series of transactions or to manage the affairs of the principal generally conferring necessary authority upon another person. A deed of power of attorney is executed by the principal in favour of the agent. The agent derives a right to use his name and all acts, deeds and things done by him and subject to the limitations contained in the said deed, the same shall be read as if done by the donor. A power of attorney is, as is well-known, a document of convenience.
Besides the Indian Contract Act, the Power of Attorney Act, 1882 deals with the subject. Section 1 A of the Power of Attorney Act defines power of attorney to include any instruments empowering a specified person to act for and in the name of the person executing it. Section 2 of the said Act reads, thus: