The House was asked whether a power of attorney included a power to draw cheques on the principal’s bank account in order to pay his own debts. The Court of Appeal by a majority, Russell J dissenting, had held that it did having regard to the terms of a letter written by the principal to his bankers.
Held: The decision was reversed. A power of attorney is to be construed strictly. The House adopted the statement of Russell LJ: ‘the primary object of a power of attorney is to enable the attorney to act in the management of his principal’s affairs. An attorney cannot in the absence of a clear power to do so, make presents to himself or to others of his principal’s property ‘
Citations:
[1929] AC 176
Jurisdiction:
England and Wales
Cited by:
Cited – McDowall v Inland Revenue SCIT 26-Jun-2003
Gifts had been made from an estate, purportedly under a power of attorney. During his lifetime, the deceased had made various gifts to his children. As he begand to suffer Alzheimers, he gave a power of attorney. He had substantial assets, well . .
Lists of cited by and citing cases may be incomplete.
Agency
Updated: 30 April 2022; Ref: scu.224087