What is 'agency coupled with an interest,' and how does it affect the principal's ability to revoke?

• A. Agency created to protect the agent's own interest; such agency is typically non-revocable or revocable only under limited conditions.
• B. Agency created solely to benefit the principal; always revocable.
• C. Agency with interest is revocable at will.
• D. Agency with interest cannot be terminated by the principal.

Answer: (C)

Agency coupled with an interest means the agent has a real stake in the subject matter of the agency—a property or security interest that the agent would lose if the principal could revoke at will. Because revoking the agency would defeat the agent’s secured interest, such an agency is generally irrevocable for the duration of that interest. In practical terms, the principal cannot terminate the agency simply to avoid the agent’s rights or compensation; the relationship persists until the interest expires or is fulfilled, or until the parties mutually agree to end it. This protects the agent’s ability to safeguard and realize the interest, even though ordinary agencies that exist only to benefit the principal can be revoked at the principal’s will.