Archive for September, 2009

By law, an attorney is required to keep all communications with a client confidential and secret. This is the case even if it is only for an initial consultation, whether or not the attorney is ultimately retained.

Any attorney who would reveal such privileged or confidential information would be violating the State Bar rules. If a client places his trust in an attorney, that attorney should never betray that trust. An attorney should never disclose a client’s legal problems to anyone, without the client’s express permission. (I know some people are afraid to seek an attorney’s advice, out of fear the attorney will report them to DHS. But an attorney is forbidden, by law, from doing that.)

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According to the foremost Credit & Collection guru Erling Sison, Special Powers of Attorney are necessary in the following cases:

(1) To make such payments as are not usually considered as acts of administration;

(2) To effect notations which put an end to obligations already in existence at the time the agency was constituted;

(3) To compromise, to submit questions to arbitration, to renounce the right to appeal from a judgment, to waive objections to the venue of an action or to abandon a prescription already acquired;

(4) To waive any obligation gratuitously;

(5) To enter into any contract by which the ownership of an immovable is transmitted or acquired either gratuitously or for a valuable consideration.

(6) To make gifts, except customary ones for charity or those made to employees in the business managed by the agent;

(7) To loan or borrow money, unless the latter act be urgent and indispensable for the preservation of the things which are under administration;

(8) To lease any real property to another person for more than one year;

(9) To bind the principal to render some service without compensation;

(10) To bind the principal amount in a contract or partnership;

(11) To obligate the principal as a guarantor or surety;

(12) To create or convey real rights over immovable property;

(13) To accept or repudiate an inheritance;

(14) To ratify or recognize obligations contracted before the agency;

(15) Any other act of strict dominion. (Art. 1878, Civil Code).

Furthermore, according to Mr. Sison, there are several forms of Powers of Attorney:

1. Form 1-972 – General Power of Attorney; 2.Form 2-972 – Special Power of Attorney to Negotiate for a Loan; 3.Form 3-975 – Special Power of Attorney to Borrow Money, Mortgage Land, Satisfy Mortgage, etc.; 4.Form 4-977 – Special Power of Attorney to Manage Real Property; 5.Form 5-979 – Special Power of Attorney to Settle Personal Injury Claims;

6. Form 6-980 – Special Power of Attorney to Collect Claim; 7.Form 7-981 – Special Power of Attorney to Purchase House and Lot; 8.Form 8-983 – Special Power of Attorney to Sell Shares and Securities; 9.Form 9-985 – Appointment of Substitute Attorney-in-Fact; 10.Form 10-986 – Revocation of Power Attorney.

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