Duties of an Attorney

The power of attorney empowers an attorney to act on behalf of their principal in matters relating to the principal’s financial matters. Those who act in their capacity as attorney should know that they are subject to stringent duties as an attorney. Whilst the attorney may act for the principal, this does not mean that the principal indemnifies all acts of the attorney.

An attorney who acts improperly and causes loss may be held personally liable for that loss and be made to recover that loss. In some cases, attorneys who act improperly can even be found guilty of a criminal offence. By law, attorneys must keep full and proper records of everything they do. It is an offence not to keep full and proper records of the attorney’s actions. They must also be seen to be acting in the best interests of their principal at all times.

It is important to understand that an attorney cannot be paid for any work done on behalf of the principal. The exception to this is any out-of-pocket expenses the attorney can prove were directly connected to executing the attorney’s duties.

Attorney’s Power

It is the duty of an attorney to act only within the authority granted to them in the power of attorney. Attorneys cannot exceed the power granted to them. If the wording of the power of attorney results in an ambiguity, an attorney remains indemnified if they act on a reasonable interpretation of the specific term in the power of attorney. In that case, the principal will still be bound by the actions of the attorney. However, if the attorney acts on an unreasonable interpretation of the power of attorney, they will not be indemnified for their actions. The attorney in that case may be sued personally by those they deal with. Principals who are adversely affected by their attorney’s actions in such cases may seek remedy.

If you are an attorney and in doubt as to the wording of the power of attorney, it is important to seek legal advice. If you are a principal and believe that your attorney has acted beyond the power granted to them, you should seek legal advice. At Straits Lawyers, we advise both attorneys and principals as to any legal issues that may arise. Simply email us at info@straitslawyers.com or call at 08 8410 9069 to arrange an appointment.

Please note that this article does not constitute legal advice and Straits Lawyers will not be legally responsible for any actions you take based on this article.