On January 12,2024, it was published a decision on the importance to notify the attorneys-in-fact on the revocation of their authority.

In the matter at hand, a court agreement that put and end to a trial was signed by one of the party’s attorney-in-fact, yet it was ratified before the court, it was not approved by the judge as mandated by the law. The above because the authority of the attorney-in-fact had been revoked before the agreement’s execution.

The federal court that reviewed the matter concluded that even when the power-of-attorney was revoked before the execution of the agreement that put an end to the trial, the agreement needed to be approved by the judge because the attorney-in-fact had not been informed of such revocation.

The reason for this is because the acts executed by the attorney-in-fact to whom his authority’s revocation was not informed, are valid to good faith third parties. That is, those who execute agreements with the attorney-in-fact not knowing that his authority was revoked.

To avoid keeping the validity of revoked powers-of-attorney, it is strongly advisable to provide the attorney-in-fact with timely notice informing him that his authority has been revoked. Another option is establishing conditions or deadlines for the power of attorney’s expiration. Hence, there will be no need to revoke it and provide notice to the attorney-in-fact accordingly.

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