What is an 'agency coupled with interest'?

An 'agency coupled with interest' refers to a specific type of agency relationship where the agent has a financial stake in the property or transaction involved. This means that the agent's authority to act on behalf of the principal arises from their own interest in the property or the outcome of the transaction. Because the agent stands to benefit financially from their actions, this type of agency relationship is often considered irrevocable; it cannot be easily terminated by the principal without repercussions, as the agent would lose their investment or stake in the matter.

The implication of this arrangement is that the interests of the agent and the principal are closely aligned, leading to motivation for the agent to act in the best interests of the principal while also protecting their own financial interests. This ensures a level of commitment and responsibility that might not be present in other types of agency relationships.