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SPECIAL POWER OF

ATTORNEY

DEFINITION

These are documents or


contracts to establish an
agency
relationship
between a principal and an
agent.

SIMPLY STATED..
A Special Power of Attorney is a
legal document wherein a person
designates another person to do a
particular act in his behalf. This
document states the authority of
a person and the limits of his
authority in doing a particular act.

WHAT IS A CONTRACT OF
AGENCY?

Article 1868 of the Civil Code of


the Philippines states: By the
contract of agency a person
binds himself to render some
service or to do something in
representation or on behalf of
another, with the consent or
authority of the latter.

PARTIES

The
person
executing
this
document is called the principal
and the person designated by
the principal to do a particular
act is the agent.

WHAT ARE THE KINDS OF


POWERS OF ATTORNEY?

They are:
(1) General
(2) Special

WHATS THE DIFFERENCE BETWEEN


THE TWO?
Simply put, a special power of attorney
authorizes the agent to do specific tasks
and functions.
A general power of attorney is broader and
should be given only sparingly because
the principal will authorize his agent to do
almost everything on his behalf.

SO WHERE ARE SPECIAL POWERS OF


ATTORNEY NECESSARY?
These are necessary over the following cases,
according to Article 1878:
1) To make such payments as are not usually
considered as acts of administration;
2) To effect novations which put an end to
obligations already in existence at the time the
agency was constituted;
3) To compromise, to submit questions to
arbitration, to renounce the right to appeal from a
judgment, to waive objections to the venue of an
action or to abandon a prescription already
acquired;

4) To waive any obligation gratuitously;


5) To enter into any contract by which the
ownership of an immovable is transmitted or
acquired either gratuitously or for a valuable
consideration;
6) To make gifts, except customary ones for charity
or those made to employees in the business
managed by the agent;
7) To loan or borrow money, unless the latter act be
urgent and indispensable for the preservation of the
things which are under administration;
8) To lease any real property to another person for
more than one year

9) To bind the principal to render some service


without compensation;
10) To bind the principal in a contract of
partnership;
11) To obligate the principal as a guarantor or
surety;
12) To create or convey real rights over
immovable property;
13) To accept or repudiate an inheritance;
14) To ratify or recognize obligations contracted
before the agency;
15) Any other act of strict dominion.

THE USUAL AUTHORITIES GIVEN UNDER A SPECIAL


POWER OF ATTORNEY ARE THE FOLLOWING:

Authority to Sell a Real Property


Authority to Sell Shares of Stocks or other
personal properties
Authority to manage the business of the
principal
Authority to withdraw retirement benefits
Authority to obtain a loan
Authority to Mortgage Real Property
Other Acts which cannot be consummated
without the proper authorization from the
concerned person.