Hong Kong Ordinances

ENDURING POWERS OF ATTORNEY ORDINANCE - SECT 14

Protection where instrument does not create valid enduring power and the power has been revoked by donor's mental incapacity

(1) The following applies where an instrument is framed in the prescribed form
but does not create a valid enduring power (but creates a power of attorney)
and the power is revoked by the donor's supervening mental incapacity (whether
or not the instrument has been registered)-

   (a)  an attorney who acts under the power does not by reason of the
        revocation incur any liability (either to the donor or to any other
        person) unless at the time of so acting he knew-

        (i)    that the instrument did not create a valid enduring power; and

        (ii)   that the donor has become mentally incapable;

   (b)  any transaction between the attorney and any other person, in favour
        of that person, is as valid as if the power had then been in
        existence, unless at the time of the transaction that person knew-

        (i)    that the instrument did not create a valid enduring power; and

        (ii)   that the donor has become mentally incapable;

   (c)  where the interest of a particular purchaser depends on whether a
        transaction between the attorney and any other person was valid by
        virtue of paragraph (b), it shall be conclusively presumed in favour
        of the purchaser that the transaction was valid if-

        (i)    the transaction between that person and the attorney was
               completed within 12 months of the date on which the instrument
               came into operation; or

        (ii)   that person makes a statutory declaration, before or within 3
               months after the completion of the purchase, that he had no
               reason at the time of the transaction to doubt that the
               attorney had authority to dispose of the property which was the
               subject of the transaction.

(2) The following applies for the purposes of this section-

        (a)	"purchaser" (購買人) has the meaning assigned to it by section 
5 (6) of the Powers of Attorney Ordinance ( Cap 31);

   (b)  section 5(8) of the Powers of Attorney Ordinance ( Cap 31) applies to
        and in relation to any reference to statutory declaration.

"purchaser" (購買人)