Termination of Agency

Once the agency is automatically terminated due to the said situation, there's no contractual agreement available to cancel it. 

If the other principals would like to safeguard their interest, they may issue a legal notice confirming the cancellation owing to the automatic termination of the contract and also can issue a public notice through newspaper publication.

Question paper do not contain facts of dispute.

4 Principals executed an Irrevocable General PoA with an Agent in 2004.

2 Principals passed away in 2008.

The PoA was not canceled by the surviving Principals.

Agent sold a piece of land from 3rd Principals share in 2012.

The sale got duly registered with mutation entries as well.

3rd Principal has approached the tehsildar for cancellation of the sale.

I bought the land from the agent. What do I do?

Section 202 of the Contract Act states that if the agent in a principal-agent relationship has an interest in the agency then, the power of attorney cannot be revoked without the consent of the agent.

Irrevocable power of attorney creating an agency, wherein the agent has an interest in the property and which forms the subject matter of such agency created for valuable consideration, the agency cannot be terminated to the prejudice of such interest, unless there is an express contract to the contrary, nor can it be ..cancelled at the wish of the principal without any valid reason.

However if it is inot clubbed with consideration,  the POA deed stands cancelled automatically upon the death of  one the principals

Therefore if the POA deed created an agency  with the agent having an interest in the property, then the sale of property by the agent even ater the death of one of the principals, executed by a registered sale deed in your favor by the power agent can be considered as legally valid.. 

The relationship of principal and agent (executant of PoA and attorney) comes to end at the time of death of either of the 4 grantors of power to the agent.

Accordingly after death of either of the 4 principals it is no more authority for the agent.

Consult and engage a local prudent lawyer for proper appreciation of facts/ documents, professional advise and necessary proceeding, if there is some truth in the story.

Hi Rakesh, I'm Niharika Lohan, an advocate practising in New Delhi. I've read your query and here is my take on it.

The agency subsisted as even after the death of two principals, the Legal representatives did not cancel the contract, thus it subsisted.

You can challenge the sale deed, if you can prove coercion, undue influence, fraud, misrepresentation, mistake, etc, otherwise the sale stands good.

I hope this information helps. You can contact me for further guidance at niharikalohan@yahoo.com