A special Power of Attorney is a legal document which provides a validity to an agent or any related person or attorney in fact the authority to act on behalf of the principle in respect of any specific matters. The existing difference between General Power of Attorney and Special General Power of Attorney is evident under some limited particular conductivities or transactions. Through this blog will be exploring the validity of SPA, probing into its explanation.

Background:
The essence of power of attorney can be found in back in days under Romanian Law, 'procuratio'.Over the period of time, through various legal systems was adopted and modified and the concept to suit their needs was come into the existence. In India, the power of attorney was introduced around British colonial period.In the 18th and 19th centuries, common law systems, including England, further developed the concept, emphasizing the need for clear documentation and legal recognition.The Indian Contract Act, 1872, and the Powers of Attorney Act, 1882, provide the legal framework for the creation and execution of powers of attorney, including Special POA.
 

Key Aspects:

Under this some points are:

• A special POA is a specific type of power of attorney that grants the agent authority to conduct on behalf of or represent the principal in certain matters.
• To make a special POA valid, it must be executed while maintaining legal requirements, which include:
  • Clear intention to grant authority by the principal
  • Acceptance of the agent
  • Proper documentation
  • Notarization & registration
  • Stamp duty
• The principal has the right to revoke the special POA at any time, provided they are mentally and physically capable of doing so. This must be done in writing and communicated to the agent and any third parties involved.
• A special POA has a limited scope for a specific purpose, which is mentioned in the document.
• Both the principal and the agent must have the legal capacity to enter into an agreement.
• The selection of the agent must be done with clarity, including terms for termination upon completion.

Difference:

The distinctions between general and special POA are:

• General POA grants broad authority for legal and financial matters, whereas special POA provides specific, limited authority for a particular task or transaction.
• General POA is more flexible than special POA.
• General POA carries a higher risk than special POA.
• General POA is valid until revoked or the principal becomes incapable, whereas special POA is valid until the completion of the specific task or transaction.
• General POA is used for managing overall affairs in the principal's absence, whereas special POA is used for a specific affair or task.

Legal Provision:

The legal provisions governing special POA in India are primarily found in the following statutes:

• The Indian Contract Act, 1872: Provides general principles of contract law applicable to powers of attorney.
• The Powers of Attorney Act, 1882: Establishes the legal framework for powers of attorney in India, outlining the requirements for creation, execution, and revocation of POAs, including general and special POAs.

Case Law:

• The Supreme Court of India has ruled that a POA cannot be used for property transfer without the principal's consent and proper execution.
• Ghanshyam v. Yogendra Rathi (2023): The Supreme Court held that a POA, including an SPA, does not constitute a title document or confer rights over immovable property. A separate registered sale deed is required even if an SPA is used for the sale process.

Conclusion
The validity of a Special Power of Attorney depends on its compliance to the legal requirements and also on the principles specified through relevant statutes. Proper execution, documentation, and registration are essential for the validity of an SPA. It is crucial for individuals and entities to ensure that their SPA complies with the given duty to avoid any potential legal disputes or challenges, such as for any inconvenience above regarding matters you can contact Online Legal Query, who can navigate you towards those senior legal experts who are eligible also qualified to help so far through proper presentation of knowledge.