Termination etc—protection of strangers
162 Termination etc—protection of strangers
Where—
an attorney under a power of attorney does an act within the scope of the power, professing to act on behalf of another,
at the time of the act of the attorney or afterwards, a third person—
acts as a purchaser or incurs an obligation or otherwise acts to his or her detriment in a transaction (with the attorney or with any other person) which depends for its validity or effect on the power not having terminated, and not being suspended, at the time of the act of the attorney, or
acts in reliance on a right, title or interest which so depends, and
at the time of the act of the third person he or she does not have notice that, at the time of the act of the attorney, the power had terminated, or was suspended so far as concerns the authority of the attorney to do that act,
the third person and any person claiming under him or her shall be entitled, as against the principal and the attorney and any other person, to rely on the power notwithstanding any termination of the power before the time of the act of the attorney, and notwithstanding any suspension of the power at that time so far as concerns authority to do that act, in the same manner and to the same extent as if the power had not terminated before the time of the act of the attorney or, as the case may be, were not under suspension at that time.
Subsection (1) does not entitle an attorney to rely on a power in support of an act within the scope of the power done by him or her with notice of termination of the power or notice of suspension of the power so far as concerns authority to do that act.
This section applies only to an act done by an attorney after the commencement of the Conveyancing (Powers of Attorney) Amendment Act 1983.
This Act’s bill:Explanatory memorandumSecond reading speech
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