Quiz 3: Advanced — Power of Attorney — Drafting & Execution

Question 1 of 5

A PoA authorises the attorney 'to sell, mortgage, lease, or otherwise deal with' the principal's property. The attorney enters into a 12-year lease. Is this within scope?

AYes — 'lease' is expressly authorised BThe lease is within scope, but the lease must be registered separately (over one year) and the PoA authorising such a lease should itself have been registered CNo — long-term leases require express and specific authorisation DYes but the attorney needs court approval

Question 2 of 5

A PoA is executed by A in favour of B for managing a specific business. B, without express authority, delegates running the business to C. Position?

AB can delegate any function to a sub-agent BB cannot delegate an act requiring personal discretion unless the PoA expressly authorises or the delegation is necessary or customary CC's actions are automatically binding on A DB is liable to indemnify A for any loss caused by C

Question 3 of 5

A pre-2012 GPA package was used to 'sell' a Delhi property. Buyer has been in possession 15 years, paid all taxes. How might the buyer secure formal title post-Suraj Lamp?

AThe GPA has now been converted into title by lapse of time BObtain a formal registered sale deed from the original owner or successors; alternatively, seek declaration and specific performance based on long possession and the agreement to sell CImmediate acquisition of formal title is impossible after Suraj Lamp DThe buyer must vacate

Question 4 of 5

A GPA holder acts in breach of the principal's specific instructions but within the general scope of the GPA. A third party has dealt with the attorney in good faith. Is the principal bound?

ANo — the attorney's breach voids the transaction BYes — the third party in good faith is protected; the principal's remedy is against the attorney CNo — the third party had constructive notice DYes — but only for 30 days

Question 5 of 5

An attorney under a PoA relating to property purchases the property from the principal for herself at market value. The principal challenges. Likely outcome?

ASale is valid because at market value BVoidable at the option of the principal — an agent has a fiduciary duty not to purchase from the principal without disclosure and consent CValid because the PoA authorised the attorney to sell DAttorney may cure by returning excess profits

Quiz 3 — Advanced