Natural and legal persons can act personally, in their own name or through a representative. A representative is someone who is authorized to act on behalf of another. The rights and obligations of the directly represented arise from the representation. A person who is not competent to perform the legal act in question, or a person whose interests are in conflict with the interests of the person represented, cannot represent another person. Representation is created on the basis of a law or a decision of a state authority (statutory representation) or on the basis of a power of attorney agreement.
The representative must act in person; may appoint another representative only if it is established by law or agreed upon by the participants. Rights and obligations of the directly represented also arise from the legal acts of another representative.
Contractual representation refers to the case where a certain person is authorized to represent a natural or legal person on the basis of a power of attorney agreement. A power of attorney is a unilateral legal act that hereby authorizes the authorized person to perform a legal act with a third party on his behalf and on his account. A power of attorney is admissible for any human action, the legal meaning of which depends on the act's expression. In some cases, however, it is legally established that the legal act must be performed by a natural person exclusively in person.
We know several types of powers of attorney, namely:
- general power of attorney (authorizes all kinds of legal acts)
- special power of attorney (authorizes a certain type of legal action)
- special power of attorney (authorizes an individual legal act)
The power of attorney must meet the requirements prescribed for a valid legal act.
The Civil Code basically has a special form for the power of attorney. Pursuant to §31 from 4, however, if it is necessary for the legal act to be done in writing, the power of attorney must be granted in writing. The power of attorney must be granted in writing even if it does not only concern a certain legal act. The written form is also required in some other cases regulated by special legal regulations.