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CS Professional · Drafting, Pleadings and Appearances · Types of Documents

Neha, a company secretary, prepares a document that will be executed by one person only, such as a power of attorney, and a separate document that two persons will sign and which will bind both, such as a partnership deed. Classifying documents by the number of parties, which is correct?

The power of attorney is unilateral and the partnership deed is bilateral or multilateral. A power of attorney is executed by one person, the grantor, while a partnership deed is entered into by two or more partners who are all bound by it.

  1. AThe power of attorney is unilateral and the partnership deed is bilateral or multilateralCorrect
  2. BBoth are unilateral
  3. CThe power of attorney is bilateral and the partnership deed is unilateral
  4. DBoth are bilateral

Explanation

A deed poll or document executed by one party, like a power of attorney granted by a principal, is unilateral. A deed made between two or more parties, like a partnership deed, is bilateral or multilateral. The other options reverse or merge the two categories.

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