Introduction

The power of attorney (PoA) is a vital legal instrument in Kuwait, commonly used to delegate authority for financial, legal, or personal matters. While it grants significant power to the agent (الموكل إليه), its misuse can lead to serious civil and criminal consequences. This article explains the legal effect of a PoA in Kuwait, including its types, enforceability, and boundaries under local law.

Types of Power of Attorney in Kuwait

• General Power of Attorney: Grants broad authority to act on behalf of the principal in multiple areas, such as banking, litigation, real estate, and inheritance.
• Specific Power of Attorney: Limited to a particular transaction or set of actions (e.g., selling one property, collecting a debt).
• Medical or Emergency PoA: Used to make decisions related to healthcare when the principal is incapacitated.

All PoAs must be notarized by the Ministry of Justice or an accredited notary to be legally binding in Kuwait.

Legal Authority Granted by a PoA

A valid PoA allows the agent to:

• Sign contracts, agreements, or legal filings
• Manage bank accounts, make withdrawals or deposits
• Sell, lease, or register real estate
• Represent the principal before government agencies or courts

The scope of authority is strictly interpreted based on the wording in the PoA document.

Legal Limitations of Power of Attorney

While powerful, a PoA has legal limitations:

• It becomes invalid upon the death of the principal, unless explicitly stated otherwise and only in limited contexts (e.g., inheritance administration).
• An agent may not act outside the specific instructions or limitations written in the PoA.
• Acts contrary to the principal’s best interests (e.g., self-dealing, personal enrichment) can lead to revocation and legal liability.
• The principal may revoke the PoA at any time through a notarized cancellation document.

Criminal and Civil Accountability

• Criminal Breach of Trust (Article 240): If the agent misuses funds or property, even with a valid PoA.
• Article 249: Targets abuse of authority granted by contract, including PoAs.
• Civil Code Provisions: Allow injured parties to revoke transactions and claim compensation.

Simply having a PoA does not exempt the agent from legal responsibility if misuse or harm is proven.

Best Practices for Using a PoA

• Clearly define the scope and duration in the PoA document
• Avoid overly broad or ambiguous language
• Notify banks, agencies, or third parties of the PoA’s existence and limits
• Monitor the agent’s actions and keep records of transactions
• Use revocation procedures if misuse is suspected