Special Power of Attorney (SPA) in the Philippines with a Single Principal

Query: What is a Special Power of Attorney (SPA) with a single principal?

A Special Power of Attorney (SPA) in the Philippines is a legal document that authorizes a representative, known as an "attorney-in-fact," to perform specific acts on behalf of the principal. The principal is the person who grants this power. When an SPA mentions only a single principal, it refers to a document where one individual grants authority to another person to act in their stead for specific transactions or legal actions.

The SPA is used for various purposes, including but not limited to managing financial transactions, selling property, running business operations, or making medical decisions. The powers granted in an SPA can be broad or narrowly tailored to specific acts, depending on the principal’s needs and preferences.

To create an SPA, certain elements must be included to ensure its legality and effectiveness:

1. Identification of the Principal and Attorney-in-fact: The full names, addresses, and identification details of both the principal and the attorney-in-fact need to be clearly stated.
2. Grant of Authority: The document must specify the exact powers the principal is transferring. This could range from the authority to manage bank accounts to selling real estate or handling contractual negotiations.
3. Scope and Limitations: The SPA should clearly outline the scope of the powers given, including any limitations or conditions the principal wishes to impose.
4. Duration: The period during which the SPA is valid must be specified. It can be for a definite period or tied to the completion of certain tasks.

The SPA must be signed by the principal and must be notarized to have legal effect. If the principal cannot sign due to illness or other reasons, a thumbprint may suffice, but additional legal steps may be required to verify the authenticity of the document.

In situations where the principal is incapacitated, it's important to note that an SPA cannot be granted if the principal is unable to understand the nature and consequences of the document they are signing. In such cases, a court-appointed guardian may be necessary.

The SPA does not require the involvement of more than one principal; a single individual can execute this document as long as all legal requirements are met. It is advisable for individuals considering an SPA to consult with a lawyer to ensure that the document is drafted correctly and meets all legal standards to effectively carry out the intended purposes.