Legal Definitions - power of revocation

The power of revocation refers to the legal authority or right to cancel, withdraw, or annul something that was previously created, granted, or established.

Here are some examples illustrating the power of revocation:

• Revocable Living Trust: Imagine a person named Sarah creates a revocable living trust to hold her assets and manage them during her lifetime, with instructions for distribution after her death. Because the trust is "revocable," Sarah retains the power of revocation. This means she can, at any time while she is alive and mentally competent, amend the terms of the trust, add or remove assets, or even completely dissolve the trust, effectively canceling the original arrangement.

• Contract Offer: Consider a scenario where a construction company sends a written offer to a subcontractor to perform specific work on a project for a set price. Before the subcontractor formally accepts this offer, the construction company generally holds the power of revocation. They can withdraw their offer at any point before it is accepted, thereby canceling their proposal and preventing a contract from being formed based on that specific offer.

• Power of Attorney: Suppose Mr. Henderson grants his niece, Emily, a power of attorney to make financial decisions on his behalf while he is traveling abroad. As the "principal" (the person granting the power), Mr. Henderson retains the power of revocation. If he decides he no longer wants Emily to have this authority, or if he returns home and wishes to manage his own affairs again, he can legally revoke the power of attorney, thereby canceling the authority he previously granted to Emily.