Ontario Barrister and Solicitor Practice Exam

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Study for the Ontario Barrister and Solicitor Exam. Quiz with flashcards and multiple choice questions, each with hints and explanations. Prepare for your legal career!

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Who has liability if a bank releases funds to an attorney under a power of attorney that has been revoked?

The attorney
The bank, if it had notice of the revocation
The bank, but it is protected if it had not received notice of revocation
The person who revoked the power of attorney

The correct answer is: The bank, but it is protected if it had not received notice of revocation

When a power of attorney is revoked, the person who originally granted the power has terminated the authority given to the attorney. However, in the case where a bank releases funds to the attorney after the power of attorney has been revoked, the bank may still be held liable for releasing the funds if they had received notice of the revocation. In this scenario, the bank may be protected from liability if they had not received notice of the revocation. Therefore, the correct answer is C, the bank is liable but may be protected without prior knowledge of the revocation. The other options are incorrect because the attorney may not be liable as the power of attorney has been revoked, and the person who revoked the power may not be liable in this specific situation.