The Supreme Court of Cassation decided on matters of empowerment

On December 12th 2016 The Supreme Court of Cassation in its interpretative case № 5/2014 decided on three important questions related to the matters of empowerment.

The Supreme Court of Cassation accepts that it is sufficient for a power of attorney to contain the common will for disposion of a property, in order for this empowerment to be valid. There is no need for the power of attorney to contain detailed specifications, such as types of transactions to be performed, the exact property, its price, the counterparty, etc.

Only when the law explicitly establishes for certain content to be included in the power of attorney, then should the empowement meet these requerments.

The Supreme Court of Cassation decrees that a contract concluded by a person acting as a proxy without having been authorized by the represented party, doesn`t bind the principal without him explicitly confirming the contract.

The Supreme Court of Cassation also held that the contract under which the representatives of both sides have agreed to damage the principal doesn`t bind the latter and such contract is void. Only the represented person or his universal successors can rely on that invalidity.