In modern life, it is common for individuals and organizations to entrust a specific task to one or more other individuals or organizations to act on their behalf. Authorization is an effective legal instrument that allows one party to perform certain tasks on behalf of another within a specified scope. A Power of Attorney is a swift and cost-effective solution that helps parties achieve the purpose of the authorization. This article will provide readers with legal provisions, advantages, and key considerations related to Power of Attorney.
1. Authorization under Legal Provisions
Currently, the concept of “authorization” is not directly and specifically defined in legal documents. However, based on the provisions of Articles 134 and 135 of the 2015 Civil Code, which regulate the basis for establishing representation rights, “authorization” can be understood as the act of an individual or legal entity granting another individual or legal entity the power to establish and perform civil transactions on their behalf.
Accordingly, authorization serves as the basis for the relationship between the representative and the Principal. This provides the foundation for the authorized party to act on behalf and in the name of the Principal within the permitted scope of the authorization. Simultaneously, the Principal has a basis for receiving the results of the work brought about by the authorized activity.
Therefore, authorization can be seen as a flexible legal tool that allows an individual or a legal entity to grant another individual or legal entity the right to perform certain tasks within a specific scope.
2. Current forms of Authorization
In practice, “authorization” can be executed in two forms: (i) Authorization Contract and (ii) Power of Attorney. Accordingly, an authorization contract is a form of authorization specifically recognized in Article 562 of the 2015 Civil Code2. It is an agreement between the parties, and The Principal is obligated to pay remuneration if agreed upon or if mandated by law.
In contrast to authorization contract, power of attorney is not officially recognized by law. It is a form of authorization where one party (the Principal) authorizes the other but does not require an agreement. Thus, in essence, an authorization contract is a bilateral legal act, requiring the consent of authorization and acceptance of the scope of work by the authorized party. In contrast, power of attorney is a unilateral legal act that does not require an agreement between the Principal and the authorized party.
3. Advantages of a Power of Attorney and key considerations
A Power of Attorney, by its nature as a unilateral legal act, only requires execution and signing by the Principal, without needing approval or a signature from the other party. Therefore, using Power of Attorney as the form of authorization provides high levels of speed and proactiveness in work.
For organizations with legal entity status, it is very common to authorize individuals to perform specific tasks. Given the advantages of a Power of Attorney as mentioned above, a legal entity can easily entrust work to multiple different individuals, as well as flexibly adjust the scope and term of the authorization. Current laws do not provide detailed regulations or specific requirements for a Power of Attorney issued by a legal entity. However, based on the nature of a legal entity as an independent legal organization, this document must be signed by the legal representative or an individual authorized to delegate authority according to the company’s charter or legal provisions. Moreover, to ensure legal validity and authenticity, the document must be affixed with the company seal.
Unlike legal entities, which do not have separate legal status or their own seals, individuals who authorize another individual or a legal entity are subject to specific formal requirements. In most cases, a Power of Attorney executed by an individual must have the signature notarized or certified by Notary at Public/ Private Notary Office in accordance with legal regulations. This ensures the legal validity and authenticity of the Power of Attorney and accurately reflects the Principal’s will.
Thus, depending on the specific circumstances, authorization in the form of a Power of Attorney will have different formal requirements and considerations. To better understand the legal requirements and regulations related to authorization, contact Apolat Legal directly for detailed advice from our experienced legal experts!
(2)“Article 562. Authorization Contract
An authorization contract is an agreement between parties, whereby the authorized party is obligated to perform a task on behalf of the authorizing party, and the authorizing party is only required to pay remuneration if agreed upon or if prescribed by law.”
Date written: 20/09/2025
Disclaimers:
This article is for general information purposes only and is not intended to provide any legal advice for any particular case. The legal provisions referenced in the content are in effect at the time of publication but may have expired at the time you read the content. We therefore advise that you always consult a professional consultant before applying any content.
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