ould you please explain with an example on what is "GPA coupled with consideration"?
How to find out from the GPA that whether it is coupled with consideration or not?
How are all the clauses to look for in the GPA to find it is with consideration?
Also explain the law "section 202 of Indian contract act" in simple understandable terms.
The GPA coupled with interest means that if the builder who is a GPA himself has entered into an agreement (JDA) with the landowner and paid him the consideration amount as per the agreement conditions, and the the other party has executed a power of attorney deed in favor of this builder promising him the property as per the conditions of the said agreement, this can be termed as coupled with an interest to the builder and the revocation of the deed for ny reason would cause heavy loss to the builder, hence it can be said to be an irrevocable deed.
The provisions of section 202 of contract act is reproduced below with an illustration to make you understand the meaning thereby in plain language:
202. Termination of agency, where agent has an interest in subject-matter.—Where the agent has himself an interest in the property which forms the subject-matter of the agency, the agency cannot, in the absence of an express contract, be terminated to the prejudice of such interest. —Where the agent has himself an interest in the property which forms the subject-matter of the agency, the agency cannot, in the absence of an express contract, be terminated to the prejudice of such interest."
Illustrations
(a) A gives authority to B to sell A’s land, and to pay himself, out of the proceeds, the debts due to him from A. A cannot revoke this authority, nor can it be terminated by his insanity or death. (a) A gives authority to B to sell A’s land, and to pay himself, out of the proceeds, the debts due to him from A. A cannot revoke this authority, nor can it be terminated by his insanity or death."
(b) A consigns 1,000 bales of cotton to B, who has made advances to him on such cotton, and desires B to sell the cotton, and to repay himself out of the price the amount of his own advances. A cannot revoke this authority, nor is it terminated by his insanity or death. (b) A consigns 1,000 bales of cotton to B, who has made advances to him on such cotton, and desires B to sell the cotton, and to repay himself out of the price the amount of his own advances. A cannot revoke this authority, nor is it terminated by his insanity or death."