Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 2 terms
The legal ability to understand and take a decision for oneself; its loss removes the power to grant, and generally to continue, an authority to act on one’s behalf.
The case families most expect a power of attorney to cover is the one Indian agency law treats as ending it. Joint holdings and radical simplification, arranged early, do the work a document cannot.
A written authority for one person to act on another’s behalf — in broking, the version that lets a broker operate your demat account.
In broking, prefer the narrower DDPI, which permits debits only for settlement, over a broad POA. In family finance, know the limit: Indian agency law treats an agent’s authority as ending if the person who granted it becomes of unsound mind, so an ordinary POA is generally understood not to survive the loss of mental capacity — the very case families buy one for.