Legal basis: Article 165 of the Civil Code of People's Republic of China (PRC) * * * If the power of attorney is in written form, the power of attorney shall specify the agent's name, agency matters, authority and time limit, and shall be signed or sealed by the client.
Article 171 of the General Principles of the Civil Law of People's Republic of China (PRC) * * * If an actor acts as an agent after he has no power of attorney, exceeds his power of attorney or terminates his power of attorney, it will not be effective to the principal without ratification by the principal. The counterpart may urge the principal to ratify it within 30 days from the date of receiving the notice. If the trustor fails to declare it, it shall be deemed as refusal to ratify it. Before the act committed by the actor is ratified, the bona fide counterpart has the right to revoke it. Revocation shall be made by notice.
If the act committed by the actor is not ratified, the bona fide counterpart has the right to demand the actor to perform the debt or demand the actor to compensate for the damage he has suffered. However, the scope of compensation shall not exceed the benefits that the counterpart can obtain when the principal ratifies.
If the counterpart knows or should know that the actor has no right to act as an agent, the counterpart and the actor shall bear the responsibility according to their respective faults.
Article 172 of the Civil Code of People's Republic of China (PRC) * * * The agent still acts as an agent without agency, beyond agency or termination of agency. If the counterpart has reason to believe that the agent acts as an agent, the agency act is valid.