The Impact of Attorney's Resignation on the Principal's Permission

Document Type : Original Article

Authors

1 Associate Professor, Department of Private Law, Faculty of Law and Political Science, University of Mazandaran, Babolsar, Iran.

2 phd student of Private Law, Faculty of Law and Political Science, Mazandaran University, Babolsar, Iran

10.22034/mfu.2025.142040.1466

Abstract

According to Article 678 of the Civil Code, one of the methods of terminating a power of attorney is the attorney's resignation. However, pursuant to Article 681 of the same code, the attorney can continue to act within the scope of the power of attorney after resignation, as long as the principal's permission remains. This provision is entirely contrary to the contractual nature of the power of attorney; because after the dissolution of the contract, the basis for the attorney's representation will be eliminated. Therefore, how can the attorney change their mind after resignation and continue their representation? Is the previous contract revived, or should we look for another basis, and does the principal's knowledge play a role in this? Various opinions have been presented by jurists and legal scholars to find a basis and sometimes justify this ruling; however, most of these views contradict the civil code articles. In this research, based on a descriptive-analytical method, after inducting jurisprudential and legal views and legal regulations and analyzing them, it was concluded that with the attorney's resignation, the power of attorney contract is dissolved. However, due to some practical considerations and to protect the principal and the other party to the transaction, as an exception and by secondary ruling, the permission issued by the principal, which formed the basis of the contract, does not disappear. The attorney, upon confirming the continuation of the permission, can act within its limits unless the principal revokes their permission.
 

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References

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Comparative Studies on the Schools of Jurisprudence and its Principles
Volume 7, Issue 2 - Serial Number 13
Publisher
September 2024
Pages 88-69

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