How to cancel development agreement and power of attorney

Hello,

You can terminate a Development Agreement just by communicating the fact of termination to the other side by way of written correspondence to that effect. However, there are certain things you must keep in mind while doing so.

Firstly, if the development agreement contains a termination clause, it must be terminated as per the terms of the clause. If your termination is in violation of the agreement, it leaves the builder free to claim damages from you and have it granted by Court. Moreover, even if there is no termination clause, you can still terminate the agreement, but unless you can show the termination was justified, you'd still be liable to pay damages to the builder.

Further, the power of Attorney, as long as it is revocable, it can be revoked by drafting a revocation deed as both you and the builders to be parties to effect of dissolving their power and publishing it in the daily newspaper. In case the Power of Attorney is a registered one, the said revocation deed should also be registered and notarised.

In the light of section 202 of the Indian Contracts Act, where the person in whose favour POA is created has an interest in the subject matter, such POA cannot be terminated without a express contract between both the parties agreeing to the same.