A Power of Attorney (PoA) is a legal document, which gives a person (attorney holder or agent) the power to act on behalf of another person (principal) and undertake activities set out in the document. It is used for transactions related to property, investments and legal proceedings.
There are two types of PoA—general and special. Under a general PoA, the principal empowers the agent with legal authority to act on his behalf without restricting it to a particular transaction or act. A special PoA restricts the authority to only a set of transactions that are sanctioned by the principal. It can be revoked by the principal, or under the following circumstances: if the principal dies, becomes insane, bankrupt, or if the business for which the agent was appointed is over, or if it is mutually agreed upon by the principal and agent, or if the agent renounces his right.