Power of Attorney in English

A power of attorney is a right of representation granted with a transaction, which makes it possible to carry out a transaction through a representative. A power of attorney is a written document issued on authorisation.
If a representative has been granted authorisation to carry out a transaction and the representative carries the transaction out on behalf of the represented party, the transaction performed based on the power of attorney will be valid for the represented party as if they had carried it out themselves.

In which format should the power of attorney be issued?
Principally, a power of attorney may be made in free format (oral, written, in a format that can be reproduced in writing, notarised or attested). However, if a defined format is foreseen in the law for a transaction, the power of attorney for the transaction must be in this format. For example, an authorisation for selling a movable may be granted orally. In order to represent the principal in court, the power of attorney must be formalised in at least written format. However, if the principal wishes to issue the power of attorney for, e.g., sale of a property, the power of attorney must be notarised.

What is the content and scope of a power of attorney?
The content and scope of the power of attorney is determined by the represented party upon issuing the power of attorney. In case of a general power of attorney, it is presumed that it concerns performing all deeds for the represented party. As a rule, it concerns things related to property. General powers of attorney are applicable for personal issues if it is unambiguously stated so in the power of attorney.
A representative may be allowed to carry out transactions as they see fit, but if necessary, it is possible to limit the rights of the representative in carrying out transactions with the conditions set by the represented party (term of the transaction, price of the transaction, other conditions).

When does a power of attorney expire?
A power of attorney expires after the representative has completed the transaction for which the power of attorney was granted or when the transaction aimed at in the power of attorney has become impossible. If the power of attorney was issued for a specific term, it will expire after the term has passed. The power of attorney will also expire if a legal entity who is the representing or represented party dissolved or if the represented party dies or is declared bankrupt. The power of attorney also expires if it is withdrawn. The represented party may withdraw the power of attorney at any time, even if it has been issued with a specific term. Withdrawal of a power of attorney is carried out by issuing an expression of will to the representative or a third party for the transaction with whom the power of attorney was issued, or to the public.
After the power of attorney has expired, the representative must return it to the represented party.
If a power of attorney has been issued for authorisation, it is considered that the authorisation is valid until the power of attorney has been returned to the represented party or it has been declared void. Validity of notarised powers of attorney can be checked in the ‘Ametlikud Teadaanded’ publication.

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