Specific versus General Powers of Attorney

The biggest difference we see when comparing powers of attorney in the US and Brazil relates to the agent’s scope of authority.

In the US, we’re used to general powers of attorney. They’re broad and often grant unlimited powers to an agent. In contrast, powers of attorney in Brazil are usually specific and limit agents to performing only those acts that are listed.

The US also has “special” powers of attorney, which are limiting. But even those are different from what we commonly see in Brazil. For example, powers of attorney are often rejected in Brazil if they don’t include specific language - verbatim.

Which type of power of attorney is better? It depends. There are advantages and disadvantages to both types.

The broader the powers granted, the easier it is for the agent to act. But there’s also more risk to the principal since the potential for abuse by the agent is greater.

Specific powers of attorney can protect the principal by limiting the agent’s powers. However, a problem can arise when the agent needs to perform an act that is not stated in the mandate. It can also lead to more room for interpretation (and, consequently, the potential for rejection).

This is just one reason why drafting powers of attorney for use in Brazil can be tricky. Transactions are fluid, and there are frequently unforeseen circumstances. The goal is to be prepared with documents that allow you to adapt and act where necessary.