The Law of Agency and the Power of Attorney - Case Study Example

Power of AttorneyThe law of agency is a segment of commercial law concerned with fiduciary relationships involving an agent, who represents the other, a principle, in the creation of relationships with third parties. In a relationship, the agent acts on behalf of the principle. The agent-principle relationship requires that the power of Attorney, also known as the letter of Attorney, a written authorization enabling an agent to represent or act on behalf of a principle in matters of private affairs, businesses, or other legal matters .

In the case of Francis Gagnon, Joan her daughter and Frank Gagnon the son, it is clear that Joan had the right and authority for the transfer of Shelburne property under her creation and control. First, once the power of Attorney has been signed, it holds and in the event of revocation, then the agent must be served with a copy of the signed revocation documents (Dias, 2000). In the case stated, it is evident that Francis Gagnon’s revocation was never told to Joan explicitly, and, therefore, the power of Attorney still holds.

Secondly, according to the power of Attorney, any decision that an agent makes on behalf of the principle stands (Dias, 2000). Additionally, Frank Gagnon never incapacitated for any reason, to revoke the already signed power of Attorney. Based on such a perspective, it is sufficiently clear that the revocation of the power of attorney was unlawful. Since an agent should always act in place of the principle, the property had, therefore, been transferred to the trust, and, therefore, was the trust’s property.

ReferenceDias, D. (2000). Power of attorney. London: Hodder & Stoughton.