Free LA-Notary Mandate (Powers of Attorney) and Representation Questions and Answers — Questions and Answers
Question 1: A mandate, or power of attorney, authorizing an agent to sell a piece of immovable property must be in what form?
- It can be oral if there is a witness.
- It must be in writing.
- It must be in the same form required for the act of sale itself (act under private signature or authentic act). (Correct answer)
- It must be recorded in the parish where the agent resides.
Correct answer: It must be in the same form required for the act of sale itself (act under private signature or authentic act).
The Louisiana Civil Code requires that a mandate be in the same form as the act for which it is granted. Since an act of sale for immovable property must be in writing (and often in authentic form to be effective), the power of attorney authorizing that sale must also be in writing, and if the sale is to be by authentic act, the power of attorney should also be by authentic act.
Question 2: A power of attorney that grants the agent the authority to 'manage all of my affairs' is considered a general mandate. Which of the following actions would require express, specific authority not granted by this general language?
- Paying a utility bill for the principal.
- Hiring a contractor to make minor repairs to the principal's home.
- Donating the principal's car to a charity. (Correct answer)
- Depositing a check into the principal's bank account.
Correct answer: Donating the principal's car to a charity.
A general mandate only confers authority for acts of administration. Acts of disposition, such as selling, encumbering, or donating property, require express authority in the mandate. Donating the principal's car is an act of disposition and would not be covered by a general grant of authority to 'manage all affairs.'
Question 3: A principal grants a power of attorney to an agent. Which of the following events will automatically terminate the mandate by operation of law?
- The agent moves to a different parish.
- The principal becomes temporarily ill.
- The death of the principal. (Correct answer)
- The agent misplaces the original power of attorney document.
Correct answer: The death of the principal.
A mandate terminates upon the death of either the principal or the agent. It also terminates upon the interdiction of either party or upon notice of revocation by the principal or renunciation by the agent. Temporary illness or a change of residence does not automatically terminate the mandate.
Question 4: A principal wants to grant a power of attorney that will remain effective even if he later becomes incapacitated. What specific language must be included in the document?
- 'This power of attorney is irrevocable.'
- 'This power of attorney shall not be affected by my subsequent disability or incapacity.' (Correct answer)
- 'This power of attorney is granted in perpetuity.'
- 'This power of attorney is for healthcare decisions only.'
Correct answer: 'This power of attorney shall not be affected by my subsequent disability or incapacity.'
For a power of attorney to be 'durable' and continue in effect after the principal's incapacity, the document must contain specific language to that effect. The phrase 'This power of attorney shall not be affected by my subsequent disability or incapacity' or similar wording accomplishes this goal.
Question 5: An agent, acting under a valid power of attorney, signs a contract with a third party on behalf of the principal. If the agent acted within the scope of his authority and disclosed his representative capacity, who is bound by the contract?
- Only the agent.
- Only the principal. (Correct answer)
- Both the agent and the principal are personally liable.
- Neither party is bound until the principal ratifies the contract.
Correct answer: Only the principal.
When an agent acts within the scope of their authority and discloses that they are acting on behalf of a principal, the agent is not personally bound by the contract. The contract is formed directly between the principal and the third party, and only the principal is liable for its performance.
Question 6: A principal executes a power of attorney and has it recorded in the public records. To effectively revoke this mandate with respect to third parties who may rely on the public record, the principal must:
- Simply notify the agent orally that he is fired.
- Send a certified letter to the agent.
- File a written revocation in the same public records where the mandate was recorded. (Correct answer)
- Publish a notice of revocation in the local newspaper.
Correct answer: File a written revocation in the same public records where the mandate was recorded.
While notice to the agent can terminate the agent's authority as between the principal and agent, it does not protect the principal from third parties who may rely on a recorded power of attorney. To terminate the mandate's effect as to third parties, the revocation must also be recorded in the same office where the original mandate was recorded.
Question 7: In Louisiana Civil Law terminology, the written instrument that contains a power of attorney is often referred to as a(n):
- Mandate
- Procuration (Correct answer)
- Act of Agency
- Letter of Representation
Correct answer: Procuration
While 'mandate' refers to the contract of agency itself, the term 'procuration' is specifically used to describe the written document that evidences the mandate, i.e., the power of attorney document. A notary will often draft a document titled 'Act of Procuration' or 'Procuration.'
Free LA-Notary Mandate (Powers of Attorney) and Representation Questions and Answers
A mandate, or power of attorney, authorizing an agent to sell a piece of immovable property must be in what form?