Full text: Secretarial practice

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SECRETARIAL PRACTICE 
Death of According to the common law, the death of the grantor of 
Principal or a power was a revocation of the authority, but it has been 
Attorney. pointed out how this principle has been modified by statute. 
The representatives of a dead principal, it is true, could 
ratify, at their discretion, a contract made by the attorney 
in the name of the principal after his death, but in the 
absence of ratification they were not bound by it [Foster 
v. Bates (1843), 12 M. & W. 226]. On the death of the 
attorney, the latter’s representatives have no authority to 
exercise the power, and the death of the attorney revokes 
the appointment of a substitute made by him under a power 
authorising delegation; for it is assumed in law that the 
attorney had been chosen by the principal because of his 
possessing some qualities of mind which fitted him peculiarly 
sither for the conduct or for the supervision of the principal's 
affairs. 
Joint For the same reason, where two attorneys are appointed 
Attorneys. to act jointly and one of them dies, the survivor cannot act 
alone. 
Joint Where there are two or more joint principals, the death 
Principals. of one of them will generally revoke the power as to the 
other or others [Gee v. Lane (1812), 15 East 592]. Although 
the Courts nowadays might not insist upon observing the 
old strictness as regards this rule, the third party would be 
well advised not to place faith in speculation, but to assume 
that the old rule was still valid. 
As has already been shown, if the principal was insane at 
the time when he executed the power, the instrument is abso- 
lutely void. If, however, he was sane at the time of execution, 
but subsequently becomes insane, the rule of common law is 
that the power is determined as between the principal and the 
attorney, but that the revocation is not operative as against 
a third party, who deals with the attorney in good faith and 
without knowledge of the insanity [Drew v. Nunn (1879), 4 
Q.B.D. 661]. The sections of the Law of Property Act, 1925, 
set out in this Chapter, show how this principle of protecting 
third parties is recognized by statute. 
Insanity of Insanity of the attorney revokes his authority, since 
the Attorney. he loses the capacity to exercise the will of his principal; and 
third parties who deal with him are in a better position than 
the principal himself to ascertain the fact of his insanity. 
Bankruptcy In the case of bankruptcy of the principal, as in the case 
of the of his insanity, the position of third parties is protected by 
Principal. (he Taw of Property Act, 1925. According to the common 
law bankruptcy of the principal revokes the power, except 
in respect of a purely formal act necessary to complete a
	        
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