Victorian Consolidated Legislation

Instruments Act 1958 - SECT 110

Protection of attorney and third persons where power of attorney is revoked

110. Protection of attorney and third persons where power of attorney is
revoked



(1) Where-

   (a)  an attorney does an act under a power of attorney within the scope of
        the power; and

   (b)  at that time the attorney does not have notice that the power had been
        revoked-

he shall be entitled to rely on the power, as against the donor and any other
person, notwithstanding any revocation of the power before the time of the
act, in the same manner and to the same extent as if the power had not been
revoked before the time of the act.

(2) Where-

   (a)  an attorney does an act under a power of attorney within the scope of
        the power;

   (b)  at the time of the act of the attorney or afterwards, a third person-

   (i)  acts as a purchaser or incurs an obligation or otherwise acts to his
        detriment in a transaction (with the attorney or with any other
        person) which depends for its validity or effect on the power not
        having been revoked at the time of the act of the attorney; or

   (ii) acts in reliance on a right, title or interest which so depends; and

   (c)  at the time of the act of the third person he does not have notice
        that the power had been revoked before the time of the act of the
        attorney-

the third person and any person claiming under him shall be entitled as
against the donor and the attorney and any other person, to rely on the power,
notwithstanding any revocation of the power before the time of the act of the
attorney, in the same manner and to the same extent as if the power had not
been revoked before the time of the act of the attorney.

(3) Subsection (2) shall not entitle an attorney to rely on a power in support
of an act within the scope of the power done by him with notice of revocation
of the power.

(4) Where the power is expressed in the instrument creating it to be
irrevocable and to be given by way of security then, unless the third person
knows that it was not in fact given by way of security, he shall be entitled
to assume that the power is incapable of revocation except by the donor acting
with the consent of the attorney and shall accordingly be treated for the
purposes of subsection (2) as having notice of the revocation only if he knows
that it has been revoked in that manner.

(5) Except as is otherwise expressly provided in subsection (4) notice of the
revocation of a power of attorney includes notice of the occurrence of any
event (such as the death of the donor) which has the effect of revoking the
power.