Power of Attorney for Signing a Contract

Power of attorney for signing a contract – a professional template in Word format

A power of attorney for signing a contract is a statement by which the principal authorises another person to conclude and sign a specific contract in his or her name and for his or her account. It is used when a person cannot be present at the signing – because he or she lives or works abroad, is prevented by ill health, or the transaction is being concluded in another town.

Representation on the basis of a power of attorney is governed by the Obligations Act (Zakon o obveznim odnosima). The template is drawn up as a special power of attorney – for one precisely defined transaction – because that is exactly the form required for more serious contracts. It also contains fields for the essential terms, by which the principal sets in advance the limits within which the transaction may be concluded.

Key features

• A professional template – the structure is drawn up in line with the rules of the Obligations Act (Zakon o obveznim odnosima) on representation and powers of attorney.
• Practical reliability – an exact description of the transaction, the essential terms and the period of validity reduce the risk of the attorney-in-fact exceeding his or her authority and of the power of attorney being refused by the notary public.
• Easy customisation – two variants of the essential terms, one with a price and time limits set in advance, the other leaving them to the attorney-in-fact’s own judgement.
• Digital availability – the DOCX file with instructions arrives by e-mail immediately after purchase, ready to print and have certified.

What the template includes

• Details of the principal and of the attorney-in-fact (name, OIB – personal identification number, address)
• Authority to conclude and sign a precisely defined contract, with fields for the type of contract, the address and, in the case of real estate, the cadastral parcel and the cadastral municipality
• Variant A – the essential terms set in advance by the principal (a minimum or maximum price, time limits for conclusion, payment or handover, other terms)
• Variant B – the attorney-in-fact negotiates the terms at his or her own discretion, having regard to the interests of the principal
• Authority for related acts – handing over documents, receiving instruments and signing the accompanying statements and certificates needed to carry out the transaction
• The period of validity of the power of attorney, with the option of tying it to a date or to completion of the transaction, and the right of revocation at any time by written statement
• A note on the form of the power of attorney for transactions for which the law requires certification or a notarial form
• Completion instructions – the difference between a general and a special power of attorney, the consequences of exceeding authority, how to revoke it properly and the number of counterparts

Legal framework

A power of attorney is a unilateral statement by the principal and, as a rule, no particular form is prescribed for it. The key rule is that for contracts for which the law requires certification of the signature or a notarial form, for example in real estate transactions, the power of attorney itself must also be certified by a notary public, and must be a special power of attorney covering a precisely defined transaction. A power of attorney that is too general may be refused by the notary public or in the land register. A transaction concluded outside the limits of the power of attorney does not bind the principal automatically – it binds him or her only if he or she subsequently approves it.

If the matter specifically concerns real estate, we have prepared separate templates – a power of attorney for the sale of real estate and a power of attorney for the purchase of real estate. How a power of attorney works in general and what types exist is explained in our guide on the power of attorney.