# Directions

> Explanation of use of directions in Power of Attorney

Source: https://wiki.powersofattorney.com/directionwhatis · Updated 2 February 2023

- [A direction **regulates the core terms** of a *Power of Attorney*](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-the-core-terms-of-a-power-of-attorney)
- [**Examples** illustrating use of directions](https://wiki.powersofattorney.com/directionwhatis#examples)
- [Directions may be used for a **wide variety of purposes**](https://wiki.powersofattorney.com/directionwhatis#directions-may-be-used-for-a-wide-range-of-purposes)
- [**Failure to comply** with a direction](https://wiki.powersofattorney.com/directionwhatis#failure-to-comply-with-a-direction)
- [**Tips** for drafting directions](https://wiki.powersofattorney.com/directionwhatis#tips-for-defining-directions)
- [Directions should be **consistent**](https://wiki.powersofattorney.com/directionwhatis#directions-should-not-be-inconsistent)
- [***Power of Attorney*** **must be read as a whole**](https://wiki.powersofattorney.com/directionwhatis#power-of-attorney-must-be-read-as-a-whole)

## A Direction Regulates The Core Terms Of A *Power of Attorney*

If you review the [suggested framework](https://wiki.powersofattorney.com/strongframework#a-suggested-framework) for a *Power of Attorney* you will see that a *Power of Attorney* consists of various parts, including provisions dealing with identification of various [officeholders](https://wiki.powersofattorney.com/introotherofficeholders#essential-officeholders-include-the-principal-and-agents), [commencement](https://wiki.powersofattorney.com/commencement#commencement-of-power-of-attorney) and [termination](https://wiki.powersofattorney.com/termmng#termination-refers-to-a-power-of-attorney-coming-to-an-end) of the *Power of Attorney*, [conditions](https://wiki.powersofattorney.com/conditions#conditions-can-be-imposed-in-respect-of-an-agents-appointment) of appointment, identification of [tasks](https://wiki.powersofattorney.com/whatcanagentdo#there-are-lots-of-examples-of-commercial-tasks) an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) may perform and similar.

By contrast, a [direction](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) acts to qualify the effect and operation of those other matters set out in the *Power of Attorney*.

[Directions](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) and [limitations](https://wiki.powersofattorney.com/limitwhatis#a-limitation-qualifies-another-provision-or-principle) serve a similar purpose, however typically speaking:-

- many [limitations](https://wiki.powersofattorney.com/limitwhatis#a-limitation-qualifies-another-provision-or-principle) might be capable of being cast in the form of a [directions](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney)
- many [directions](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) cannot be cast as [limitations](https://wiki.powersofattorney.com/limitwhatis#a-limitation-qualifies-another-provision-or-principle)

## Drafting Directions

When drafting a [direction](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney), care is required to ensure that the [direction](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney):-

- does not offend applicable legal principles
- has a clear meaning
- does not conflict with other terms recorded in the *Power of Attorney* (*including any other [directions](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney)*)

## Reading Directions

When reading a [direction](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney), it is typically best to:-

- identify the core terms dealing with identification of [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal), the [tasks](https://wiki.powersofattorney.com/whatcanagentdo#there-are-lots-of-examples-of-commercial-tasks) they are authorized to perform and the [term](https://wiki.powersofattorney.com/termaboutterm#term-term-of-authority-and-term-of-appointment-of-an-agent) (i.e. lifespan) of the *Power of Attorney*
- read the [direction](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) as intended to qualify those matters
- remember that every *Power of Attorney* is different and should be read as a whole

Giving meaning and effect to the terms of any legal document is an art for lawyers.

Unless the meaning of a [direction](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) is entirely clear it may be open to closer scrutiny, potentially resulting in unforeseen outcomes.

## Directions May Be Used For A Wide Range of Purposes

[Directions](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) might deal with:-

- the [term](https://wiki.powersofattorney.com/termaboutterm#term-term-of-authority-and-term-of-appointment-of-an-agent) of the *Power of Attorney*
- [termination](https://wiki.powersofattorney.com/termmng#termination-refers-to-a-power-of-attorney-coming-to-an-end) of the appointment of an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) or all of a certain class of [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal)
- how a certain [task](https://wiki.powersofattorney.com/whatcanagentdo#there-are-lots-of-examples-of-commercial-tasks) is preferred to be performed
- satisfaction or application of [conditions](https://wiki.powersofattorney.com/agentappt#conditions-can-be-imposed-in-respect-of-an-agents-appointment)
- who may substitute for whom as a [successor agent](https://wiki.powersofattorney.com/agentswhatisagent#a-successor-agent-replaces-an-original-agent-who-is-ineligible)
- the [term of appointment](https://wiki.powersofattorney.com/termaboutterm#term-term-of-authority-and-term-of-appointment-of-an-agent) of an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal)
- certain [tasks](https://wiki.powersofattorney.com/whatcanagentdo#there-are-lots-of-examples-of-commercial-tasks) an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) is required to perform in particular circumstances
- when [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) appointed under the *Power of Attorney* may commence to perform the authorized [tasks](https://wiki.powersofattorney.com/whatcanagentdo#there-are-lots-of-examples-of-commercial-tasks)
- how an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) may [accept appointment](https://wiki.powersofattorney.com/agentswhatisagent#how-an-agent-may-accept-appointment-varies-in-the-six-6-greater-states)
- entitlement of an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) to [remuneration or expenses](https://wiki.powersofattorney.com/agententitle#an-agent-may-be-entitled-to-remuneration-or-expenses)
- requirement for an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) to provide a copy of the *Power of Attorney* to certain persons at certain times
- access to records, disclosure of confidential information and similar

Where [conditions](https://wiki.powersofattorney.com/agentappt#conditions-can-be-imposed-in-respect-of-an-agents-appointment) of appointment are imposed under a *Power of Attorney*, it may be good practice to useful to:-

- include a [direction](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) to the effect that any [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) in breach of a [condition](https://wiki.powersofattorney.com/agentappt#conditions-can-be-imposed-in-respect-of-an-agents-appointment) must resign
- include a [condition](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) of appointment that each [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) (or any [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) using a [class condition](https://wiki.powersofattorney.com/conditions#conditions-upon-a-class)) not be in breach of a [condition](https://wiki.powersofattorney.com/agentappt#conditions-can-be-imposed-in-respect-of-an-agents-appointment)

## Examples of Use of Directions

There are some examples illustrating how [directions](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) may be used under the heading [Using Directions To Control Outcomes](https://wiki.powersofattorney.com/ideas#using-directions-to-control-outcomes) in this Wiki.

## Failure to Comply With a Direction

Where a [direction](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) (*or [limitation](https://wiki.powersofattorney.com/limitwhatis#a-limitation-qualifies-another-provision-or-principle)*) requires an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) to do or not do something, failure to comply may present grounds upon which to question the performance of an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal).

The following are touchstones might assist if speculating about the consequences of an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) not complying with a [direction](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney):-

- failure to comply with a [direction](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) (or [limitation](https://wiki.powersofattorney.com/limitwhatis#a-limitation-qualifies-another-provision-or-principle)) is capable of sounding in liability on the part of the [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) damages in respect of breach of [fiduciary](https://wiki.powersofattorney.com/terms#meaning-of-fiduciary) duty
- the position is qualified by considerations such as [good faith defences](https://wiki.powersofattorney.com/agententitle#defences)
- the prospect of different outcomes in different circumstances is a factor, for example outcomes might be different where:-

  - an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) is under various [directions](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) to take reasonable steps to do certain things and for example, one of those things is not done well and the remaining [directions](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) are well complied with
  - an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) is shown to have heeded no [directions](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney)
  - one [direction](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) was plainly more significant than others and not complied with

These examples conveniently illustrate the significance of the precise terms of the *Power of Attorney*.

## Tips For Defining Directions

It is generally preferable to [direct](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) that an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) “*take reasonable steps to…[insert task]…*” as opposed to directing “*agents must …[insert task]…*”

In some instances, absolute [directions](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) may be warranted, where a [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) is emphatic something be done this may be appropriate.

The effects of the inclusion or exclusion of any [positive duty to act](https://wiki.powersofattorney.com/agentoblig#an-agent-may-not-have-a-positive-duty-to-act) should be considered in the context of any [direction](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney), particularly if the [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) perform a positive act to comply with the [direction](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney).

## Directions Should Not Be Inconsistent

[Directions](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) must be consistent with other terms, including other [directions](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney), recorded in the *Power of Attorney*.

### Example (Inconsistent Directions)

Here are examples of inconsistent [directions](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney):-

|  |  |
| --- | --- |
| **Direction 1** | My [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) can only exercise authority if I have [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs) after 1 January 2036 |
| **Direction 2** | My [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) may exercise authority after 1 January 2036 whether or not I have [capacity](https://wiki.powersofattorney.com/capacitytexas#capacity-refers-to-ability-to-manage-ones-own-affairs) |

## *Power of Attorney* Must Be Read As A Whole

The only way to be certain that a *Power of Attorney* does not contain inconsistent [directions](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) is to read the *Power of Attorney* as a whole.

For example, if a [direction](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) and [limitation](https://wiki.powersofattorney.com/limitwhatis#a-limitation-qualifies-another-provision-or-principle) are inconsistent, this would not be apparent unless the whole of the *Power of Attorney* had been read, probably in conjunction with the effects of the other terms of the *Power of Attorney* that the [direction](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) and [limitation](https://wiki.powersofattorney.com/limitwhatis#a-limitation-qualifies-another-provision-or-principle) seek to qualify.

Many lawyers would recommend drafting of [directions](https://wiki.powersofattorney.com/directionwhatis#a-direction-regulates-matters-under-a-power-of-attorney) and related provisions in a *Power of Attorney* be done by a lawyer,given their impact effects and need to be appreciated as part of the whole terms.