Queensland Consolidated Acts
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POWERS OF ATTORNEY ACT 1998 - SECT 73
Avoid conflict transaction
(1) An attorney for a financial matter may enter into a conflict transaction
only if the principal, or the court under section 118 (2) , has authorised the
transaction, conflict transactions of that type or conflict transactions
However, see section 105 (Relief from personal liability).
(2) Despite subsection (1) , if an attorney enters into a conflict transaction
without obtaining an authorisation mentioned in subsection (1) for the
transaction, a conflict transaction of that type or conflict transactions
generally, the principal may retrospectively authorise the transaction if the
principal has capacity to do so.
(3) A conflict transaction authorised under
subsection (2) is taken to be, and to have always been, as valid as if it had
been entered into under an authorisation given by the principal before the
attorney entered into the transaction.
See also section 118 (3) in
relation to the retrospective authorisation of particular transactions by the
(4) Subsection (5) applies if an attorney enters into a
conflict transaction without obtaining an authorisation mentioned in
subsection (1) .
(5) To remove any doubt, it is declared that, until the
conflict transaction is authorised under subsection (2) or section 118 (3) ,
the attorney has acted contrary to subsection (1) .
"conflict transaction" is a transaction in which there may be conflict, or
which results in conflict, between—
(a) the duty of an attorney towards the
(i) the interests of the attorney, or a
relation, business associate or close friend of the attorney; or
duty of the attorney.
1 A conflict transaction happens if an
attorney for a financial matter buys the principal’s car.
conflict transaction happens if an attorney for a financial matter lends the
principal’s money to a close friend of the attorney.
conflict transaction happens if an attorney for a financial matter rents the
principal’s residential property to the attorney or a relative of the
4 A conflict transaction happens if an attorney for a financial
matter uses the principal’s money to pay the personal expenses of the
attorney, including, for example, the attorney’s personal travel expenses.
5 A conflict transaction happens if an attorney for a financial matter buys
the principal’s house.
6 A conflict transaction does not happen if an
attorney for a financial matter is acting under section 89 to maintain the
(7) However, a transaction is not a
conflict transaction merely because—
(a) the attorney is related to the
(b) the attorney may be a beneficiary of the principal’s
estate on the principal’s death; or
(c) by the transaction the attorney, in
the attorney’s own right and on behalf of the principal—
(i) deals with an
interest in property jointly held; or
(ii) acquires a joint interest in
(iii) obtains a loan or gives a guarantee or indemnity in
relation to a transaction mentioned in subparagraph (i) or (ii) .
to remove any doubt, it is declared that the making of a gift or donation
under section 88 is not a conflict transaction.
(9) A conflict transaction
between an attorney and a person who does not know, or have reason to believe,
the transaction is a conflict transaction is, in favour of the person, as
valid as if the transaction were not a conflict transaction.
(10) In this
"joint interest" includes an interest as a joint tenant or tenant in common.
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