Mandatary’s obligations and powers
As a mandatary, you are obligated to execute the power of attorney with due diligence. You must:
- act honestly and in good faith, and avoid any conflict of interest;
- act in the best interests of the person you are representing (the mandator);
- keep the mandator informed about the actions you take on their behalf if asked or as circumstances warrant; and
- notify the mandator once you have completed your assignment and hand over any money or documents received on their behalf.
The mandatary’s powers include what is expressly stated in the power of attorney and anything arising from it. For example, let’s say you, the mandator, have asked the mandatary to sell your car. The transmission fails and the prospective buyer wants it replaced. Your mandatary has the authority to arrange for the repair if they feel they can’t close the sale without it.
Replacement and assistance
If you are a mandatary, you are required to personally execute the power of attorney unless the mandator has authorized you to find a replacement for some or all of the duties.
Note that if you are forced to find a replacement due to unforeseen circumstances, you will still be liable for that person’s actions.
If the mandator has specifically given you permission to find someone else, you can only be held responsible for your due diligence in selecting your replacement and giving them instructions.
In all cases, the mandator has the right to take legal action against the person you choose to replace you. You may get help executing the power of attorney and delegate powers accordingly, unless prohibited by the mandator or by good practice. You will still be liable to the mandator for the actions taken by the person assisting you.