1. The two commonly
used documents to delegate your authority are the letter of authority and the power of attorney.
2. A letter of
authority is a simple document, which works for routine, everyday tasks, like
collecting a cheque book from the bank branch or submitting documents on your
behalf.
3. However, this is
not a registered document and will not be accepted for more complex
transactions, such as the sale of property or any other asset.
4. For such transactions,
you need a power of attorney to delegate authority since the transaction is
bigger.
5. A power of
attorney is a more detailed document and lays down the manner in which the
transaction is to be conducted.
6. When you delegate
authority:-
a) The person
receiving the power of attorney should also know the scope of his powers,
b) You should know
what powers you are giving the other person, and
c) You should
specify how and when the document is to be revoked.