Two paragraphs in power of attorney
Jignesh
(Querist) 27 January 2013
This query is : Resolved
Two persons – X & Y , purchased a few acres of agricultural land in a certain Survey No. in Gujarat & got it converted into Non-agricultural land . Then they approached a third person – Z & created a Partnership Firm with him . X & Y brought in the above-mentioned Land as their capital contribution in the new Firm . So, the new Firm has 3 Partners – X,Y, & Z . The Firm developed the Land as Farmhouse Property & divided the land into many plots . Then , X & Y made a Power of Attorney in which they appointed Z as the attorney & gave various authorities to him such as :-
(i) to represent them in all respects in the entire business of the firm .
(ii) to buy more land , etc in the name of the firm
(iii) to construct any house property on behalf of the firm
(iv) opening & operating bank accounts & borrowing money in the name of the firm
(v) to enter into any contracts on behalf of the firm
(vi) Investing funds of the Firm as he may deem fit
(vii) Selling plots in the land belonging to the firm developed as Farmhouse Property
Etc , etc .
Now , the final 2 paragraphs in this Power of Attorney read as follows :
“This Power of Attorney shall not be affected by the subsequent disability of incompetence of the Principal “ .
“ To induce any third party to act hereunder , I hereby agree that any third party receiving a duly executed copy of this instrument may act hereunder and that revocation or termination thereof shall be ineffective so to such third party unless & until actual notice or knowledge or such revocation have been received by such third party and I for myself for my heirs , executors ,legal representatives and assignees hereby agree to indemnify and hold harmless any such third party from and against any and all claims that may arise against such third party by reason of such third party having relied on the provisions of this instrument .”
Can someone please explain to me what these last two paragraphs actually mean ?
R.K Nanda
(Expert) 27 January 2013
state real facts and not in xyz.
Raj Kumar Makkad
(Expert) 28 January 2013
One before lat paragraph contains the term that the GPA i irrevocable and shall not be cancelled even if X & Y become incapable in any situation.
The last paragraph says that Z may make agreement with a third party, it shal be binding for X & Y like Z.
V R SHROFF
(Expert) 28 January 2013
Only those POa given for consideration in money value are irrevocable; all others one can apply to revoke.
Who drafted the POA?? can u ask him??
