5 causes you may want a Power of Attorney

Often times, you must have come across a situation where you simply don’t have time to work but you can’t postpone it. You may have encountered legal difficulties and have concluded that the best way to protect your rights and interests is to hire a lawyer. Perhaps some tasks are just too difficult and complicated for you to do in person. In such cases, you can authorize another person.

The Law on Obligations is a general provision that regulates the relevant provisions on power of attorney, and any special law may deviate from these general provisions by providing more lenient or stricter conditions.

What is a power of attorney?


With this document you are authorizing another person to represent your interests on your behalf without your presence.

The proxy may only take over the legal matters for which he is authorized by the respective procuration.

A proxy who has received general power of attorney may only take on legal matters that flow into regular business. A job that is not part of a regular business can only be carried out by a proxy if they are specifically authorized to do that job, that is, the type of work it is part of.

An authorized representative may not undertake any obligation to change in any case, without special approval, not conclude a guarantee or settlement agreement with the chosen court or waive a right without compensation.

In what cases are people most likely to give someone consent to be represented?

There are many unpredictable situations in each of us life and very often the substitute is necessary when we least expect it, but these are some of the situations that are repeated most often. You may find, after reading this article, that this step may have made your life easier several times so far.

1. You want to buy or sell real estate


The power of attorney for real estate transactions is extremely important as it allows you to sell or buy real estate without being personally present where it is located. This can easily be done for you by any natural, capable, and adult person that you have chosen – a lawyer, friend, or someone you trust. Buying or selling real estate is one of the most common reasons for power of attorney.

2. Power of attorney to withdraw funds from a bank account

It often happens that old people do not know how to deal with credit and debit cards, which is why they prefer to withdraw their pension from the bank. However, it is often a very demanding and arduous task given their age. The coronavirus pandemic also contributed to this, threatening all citizens and especially the elderly who belong to the risk category. It is very practical and useful to give the authority to another person to collect a pension.

3. Minors cross the border without parents


Grandparents love to spend their time with grandchildren, but if they are minors, crossing the border with them when you live abroad can be a problem unless both parents sign a power of attorney that authorizes it. In these cases, the period of the planned trip is also given.

4. Representation in litigation

A very common example of power of attorney is when a lawsuit is being brought and you don’t have time to fully engage with it. All you have to do is authorize your attorney and the work will be done on your behalf.

5. You want to drive across the border in a rented car


If you want to borrow a car from a friend and go on a cross-border adventure, a Power of Attorney is required to prove that the vehicle was borrowed and not stolen. At you can find out more about situations in which it is good to give someone power of attorney.

Power of attorney – in what form is it granted?

Since the law on civil obligations follows the principle of informality, no special form is required for the power of attorney itself. For example, if a person wants to give another person power of attorney to enter into a contract for the sale of real estate, the power of attorney must be in writing since the contract for the sale of real estate must be in writing. If it is required for a legal transaction, ie if the condition for its implementation is, for example, the form of a notarial deed, the power of attorney must be in such a form. On the other hand, if an oral form is valid for entering into a contract, that is, for carrying out an activity, then a power of attorney is valid and is given orally. However, for security reasons, it is always recommended that a written power of attorney be issued for any form of work unless, of course, it is insignificant.

Form of power of attorney


A power of attorney is usually an informal contract.

It may only have an appropriate form if it relates to the authority to enter into a contract for which a special (usually written) form is provided by law.

In view of the scope of the powers, the procuration can be:

  1. a) general – issued for all activities of the regular management of some of the grantor’s assets (e.g. management of the principal’s movable and immovable property), with the exception of alienation and alienation, as these powers require a special power of attorney;
  2. b) specially issued for transactions that exceed the scope of normal business (e.g. sale and disposal of the property of the owner);
  3. c) extraordinary – issued in cases in which the job is of particular economic importance for the employer (e.g. assumption of an obligation to switch, conclusion of a guaranteed contract, settlement agreement).

When does the power of attorney expire?

There are several situations in which a power of attorney is deemed terminated and these are the following:

If the attorney or attorney dies or goes bankrupt (depending on the case that led to it)

Canceled the contract between the lawyer and the party and so on.

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