Distinguish between the following: Power of Attorney and Letter of Authority.

According to section 2(21) of the Indian Stamp Act, 1899, 'Power of Attorney' includes any instrument (not chargeable with fee under the law relating to Court fees for the time being in force) empowering a specified person to act for and in the name of the person executing it. It is governed by the provisions of the Power of Attorney Act, 1882. The law pertaining to power of attorney are based on the principles of agency as contained in the Contract Act, 1872. A Power of attorney can either be general or specific. A letter of authority is nothing but a power of attorney. They are executed on plain paper and not on stamp paper. Usually, this is issued for collection of some documents, papers, dividend, interest etc., by one person on behalf of another. By and large, the law relating to power of attorney will also apply to the letter of authority.