Record a third party's reliance on a power the third party did not know had ended
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the papers the lawyer marks, record whether they describe a dealing or other transaction with the attorney, whether they say the third party acted in good faith, and whether they say the third party knew of a termination or suspension. Leave each point blank if the papers do not state it. Also record, as a limit and not as a finding, that the third-party rule does not entitle an attorney who had notice of the termination or suspension to rely on the power for an act the notice concerns. Do not decide good faith, knowledge or notice.
- What the lawyer must review
- The lawyer decides whether the third party can rely on the power. Section 48(1) of the Powers of Attorney Act 2003 (NSW) says that if a power of attorney is terminated or suspended, a third party who deals or otherwise transacts in good faith with the attorney, without knowing of the termination or suspension, is entitled to rely on the power in relation to that dealing or transaction in the same manner and to the same extent as if the power had not been terminated or suspended. Subsection (2) says subsection (1) does not entitle an attorney to rely on a power in support of an act within the scope of the power done by the attorney with notice of the termination or suspension, to the extent that it concerns authority to do that act. The definitions of third party, dealing and suspended were not opened. This task does not decide the attorney's own protection under section 47.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | Do not begin AI assistance until the responsible lawyer has defined and confirmed its permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Do not decide good faith or knowledge.
- Keep the attorney-notice limit in subsection (2) separate from the third party's position.
- Do not treat this section as the attorney's own protection.
- Do not define third party or dealing. Those definitions were not opened.
Sources
- Powers of Attorney Act 2003 (NSW) s 48, third party reliance if unaware of termination or suspension · 2026-10-22
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.