Legal Matters of the Termination of Mandates in Nicaragua
Ana Teresa Rizo and Kevin Humberto Castro, lawyers in Nicaragua and experts in Corporate and Commercial Law, share with us the following news: Legal aspects of the termination of powers of attorney in Nicaragua.
The power of attorney or mandate in Nicaragua is regulated by the Civil Code, and it is defined as a contract that can be executed between present and absent parties, through public deed or private document. However, the Civil Code establishes that general administration powers or general powers of attorney shall be granted in public deeds.
It is not necessary that the attorney-in-fact or agent appears at the time the power of attorney or mandate is granted, since it is valid by implied acceptance (i.e., the representative exercises the faculties of the power of attorney or mandate, once granted) or express acceptance (i.e., the representative appears together with the grantor -or in a separate act-, to accept the referred power of attorney or mandate).
The Civil Code also indicates that the power of attorney or mandate may be terminated for the following reasons:
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By the completion of the business for which the power of attorney was granted. This is the case of certain special powers of attorney granted for a specific act; once this act is executed, the mandate is considered concluded.
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When the mandate is granted for a specific business or act, it is revoked if a new power of attorney is granted to another person for the same purpose. In case of a general administration power or general power of attorney covering several businesses, the previous ones are revoked upon the issuance of a new power of attorney for those same businesses, unless expressly stated otherwise.
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By the expiration of the term or the fulfillment of the condition established for the termination of the power of attorney. It is possible that the grantor of the power of attorney includes a term or some other condition, and upon fulfillment of such term or condition, the power of attorney is considered terminated.
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By the cancellation of the mandate, which the grantor may do at any time, without restrictions or limitations.
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By the resignation of the agent. Just as the grantor may revoke the power of attorney, the agent has the right to renounce the mandate.
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By the death of the grantor or the agent.
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By the bankruptcy or insolvency of either of the parties.
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By the interdiction of any of the parties.
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For the cease of the functions of the principal, if the mandate was granted in the exercise of such functions. If the mandate was granted to represent a legal entity, and the person who granted it ceases to perform its functions (such as a General Manager, President of the Board of Directors, or a general administrative representative whose power of attorney was revoked), such mandate also terminates.
According to the aforementioned regulations, at the time of termination of a power of attorney or mandate, it is recommended to:
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Request the original of the power of attorney granted to the representative.
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Notify the revocation of the power of attorney by the grantor to the representative; and especially to the authorizing Notary, since he/she is obliged to annotate the revocation in the margin of the original deed in his/her notarial protocol and of the testimony that was issued.
It is essential that any revocation be formally notified to the authorizing Notary to ensure its registration and prevent potential legal conflicts, as this mechanism provides a legal framework that ensures clarity and security in mandate relationships in Nicaragua.
If you would like more information about this news, please do not hesitate to contact our team.
The information provided by ARIAS® is presented for informational purposes only. This information is not legal advice and is not intended to create, and does not constitute, an attorney-client relationship. Readers should not act upon this information without seeking advice from professional advisers.