AdvocateKhoj
Login : Advocate | Client
Home Post Your Case My Account Law College Law Library
    

Report No. 68

Irrevocable Powers-provisions in English Act of 1925

6.5. At this stage, we may refer to certain provisions in English statutes which may be of interest. Sections 126 and 127 of the Law of Property Act, 19251 made certain provisions regarding the effect of a power of attorney given for value and expressed to be irrevocable or a power of attorney, whether for value or not, made irrevocable for fixed period.2 The two sections, and the definition of "purchaser" given in section 205(i) (xxi), are reproduced below :

"126. Effect of irrevocable power of attorney for value:

(1) if a power of attorney given for valuable consideration is in the instrument creating the power expressed to be irrevocable, then, in favour of a purchaser

(i) the power shall not be revoked at any time, either by anything done by the donor of the power with-out the concurrence of the donee of the power, or by the death, disability or bankruptcy of the donor or the power; and

(ii) any act done at any time by the donee of the power in pursuance of the power shall be as valid as if anything done by the donor of the power without the concurrence of the donee of the power, or he death, disability or bankruptcy of the donor of the power, had not been done or happened; and

(iii) neither the donee of the power nor the purchaser shall at any time be prejudicially affected by notice of anything done by the donor of the power without the concurrence of the donee of the power, or of the death, disability or bankruptcy of the donor of the power.

"(2) This section applies to powers of attorney created by instruments executed after the thirty-first day of December, eighteen hundred and eighty-two."

"127. Effect of power of attorney irrevocable for a fixed time :

(1) If a power of attorney, whether given for valuable consideration or not, is in the instrument creating the power expressed to be irrevocable for a fixed time therein specified, not exceeding one year from the date of the instrument, then in favour of a purchaser,-

(i) the power shall not be revoked for and during that fixed time either by anything done by the donor of the power without the concurrence of the donee of the power, or by the death, disability or bankruptcy of the donor of the power; and

(ii) any act done within that fixed time by the donee of the power in pursuance of the power shall be as if anything done by the donor of the power without the concurrence of the donee of the power, or the death, disability or bankruptcy of the donor of the power, had not been done or happened; and

"(iii) neither the donee of the power, nor the purchaser, shall at any time be prejudicially affected by notice either during or after that fixed time of anything done by the donor of the power during that fixed time without the concurrence of the donee of the power, or of the death, disability or bankruptcy of the donor of the power, within that fixed time.

(3) This section applies to powers of attorney created by instruments executed after the thirty-firs. day of December, eighteen hundred and eighty-two."

"205. (i) (xxi) 'Purchaser' means a purchaser in good faith for valuable consideration and includes a lessee, mortgagee or other person who for valuable consideration acquires an interest in property except that in Part I of this Act and elsewhere where so expressly provided 'purchaser' only means a person who acquires an interest in or charge on property for money or money's worth; and in reference to a legal estate includes a charge by way of legal mortgage and where the context so requires 'purchaser' and 'valuable consideration' includes marriage but does not include a nominal consideration in money."

1. Sections 126, 127, Law of Property Act, 1925 (15 & 16 Geo. V, Ch. 20). See now the 1971 Act.

2. See now section 4 of 1971 Act.



The Powers of Attorney Act, 1882 Back




Client Area | Advocate Area | Blogs | About Us | User Agreement | Privacy Policy | Advertise | Media Coverage | Contact Us | Site Map
powered and driven by neosys