A REPRESENTATIVE IS OBLIGED TO ACT IN THE INTERESTS OF THE ONE HE REPRESENTS
In civil and legal relations each person himself/herself determines to enter into the given relations and each person himself/herself determines when this or that action is to be implemented. In other words, the Bible says that God awarded free will to people which is undoubtedly true. It is another matter how this free will is to be manifested in daily life. How is it that people created free and equal become unfair in life along with all the legal consequences arising out of it? There are numerous cases when the given person on account of his employment or health or other reasons (reason is not important) does not personally take part in the actions directly or indirectly connected with his rights and responsibilities. Moreover, limited capable or incapable persons recognized by the court are unlimited to enter into any civil relation by the Legislation. It follows that it is necessary to have such a mechanism which can settle the given problem. In the world today its perfect model is a representation. A representation is a kind of legal relation which originates between a representative and the one whose interests are represented, then between a representative and third person(s). A representation, whatever it looks at the first sight, is voluntary, in some cases it is viewed by the legislation as a mandatory condition. For example, before a child is of legal age, his or her parent is deemed to be his or her representative (RA Family Code). It is significant to distinguish a representation from other civil legal relations. For example, if a person on account of his health, physical defect or incapability is unable to sign a transaction personally, then under the acting law another person has the right to sign instead, but the given person cannot be his representative. A head of executive body in charge of execution of charter objectives of a legal entity cannot be a representative acting in the latter’s name. In some cases the Legislation restricts people to act as representatives. For example, the representative of the aggrieved party cannot assist in criminal proceedings if he or she participates in the case as a witness etc.
Both individuals and legal entities can act as representatives. It is necessary to know that a representative ought to act in the name of the one whose interests are represented for the benefit of the latter. Therefore, it is prohibited to enter into transaction personally in the name of the one whose interests are represented in his respect or introspect of other persons, whose interests he represents simultaneously, save for commercial representatives (Section 3 of Article 318 of RA Civil Code). In order to enjoy rights and responsibilities in respect of third persons, a representative is required to inform third persons of authorizations he is entrusted with. In this regard, the one whose interests are represented (principal) ought to grant the authorizations so that: a. third persons will comprehend them b. third persons will be able to familiarize themselves with the content of the power of attorney. Transactions which require notarial attestation (real property leasing, sale, pledge contract etc.), power of attorneys also ought to be attested by a notary. For example, during sale and purchase of real property, the power of attorney of a representative ought to be attested notarially. Talking of the subject regarding civil relations, it is necessary to dwell upon terms and mechanisms of granting power of attorneys. Under the acting law (RA civil and Administrative proceedings) a lawyer is allowed to take a power of attorney without a notarial attestation.
The following are deemed to be power of attorneys equivalent to the ones attested notarially: 1. power of attorneys of servicemen or other persons who undergo treatment in military hospitals attested by the head of the hospital or doctor on duty as of the given day. 2. power of attorneys of servicemen, as well as soldiers and their family members (where there are no notarial offices) approved by the given commander of military institution. 3. power of attorneys of persons who are in detention places attested by the given head of the institution. 4. power of attorneys of persons in social protection institutions (old-aged pensioner's home) attested by the management of the given intuition or the head of corresponding body (deputy), 5. power of attorneys directed at receiving salary and other fees regarding working relations (particularly pensions, because there are numerous appeals which state that pensions are not given by virtue power of attorneys who is not regulated by anybody /Clause 9 of Article 35 of RA Law “State Pensions”/), as well as bank deposits and postal deliveries, including cash and parcel deliveries can be approved by the organization where an attorney-in-fact works or studies, self-governing body of the latter’s residential area and inpatient medical institution where he or she undergoes treatment. A power of attorney issued under the name of a legal entity shall be granted if signed by another person authorized by the head of its executive body or Charter and sealed with the stamp of the organization. It is necessary to know: a. the period of the power of attorney is three years, whereas if a power of attorney does not state any period then it is one year. b. a power of attorney shall state the year, month and date of its execution, otherwise the power of attorney shall be invalidated on grounds of all legal consequences. The Legislation grants a right to authorized persons to make reauthorization providing that the latters ought to have the right to do so or ought to be compelled to do for protection of the interests of the principal about which he or she will have to inform the principal and provide necessary information about the persons to whom authorizations are assigned, otherwise he or she will have to be held liable for the actions of the person to whom authorizations are assigned. A power of attorney granted in the reauthorization manner ought to be attested by a notary and cannot exceed the period of the power of attorney by virtue of which it is granted. Under the acting law, a principal is free to invalidate the power of attorney or cancel the reauthorization at any time, whereas the person to whom the power of attorney is granted is free to waive it. The person granting the power of attorney and later withdrawing it ought to inform the attorney-in-fact about its cancellation, as well as inform about it to other third persons before whom a power of attorney is granted for representation. The institute of representatives is a powerful and important mechanism through which millions of civil relations take place. Everyone is required to exercise their rights and responsibilities of a principal and attorney-in-fact and understand whom they entrust their interests for the representation of their interests or whose interests they represent. It is to be done not only at the time of representing the interests of the given person or after it, but also before that given moment. To apply this rule, a number of disputes and disputable cases will be decreased in courts and other instances, and time, health and financial means of the principal and attorney-in-fact will also be spared.
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