What is meant by agency coupled with interest?

Agency coupled with interest refers to a specific type of agency relationship where the agent has a vested interest in the subject matter of the agency. This typically occurs when the agent possesses control or rights over the principal's property due to a financial interest, which strengthens the agent's position and their legal authority to act on behalf of the principal.

In this context, the agent's ability to exercise control over the property is grounded in their financial stake, which differentiates this situation from other types of agency relationships. This ensures that the agent's interests are closely aligned with those of the principal, providing a heightened level of responsibility and commitment to the agent's actions and decisions regarding the property.

Understanding this concept is essential for recognizing the nuances of agency law and the obligations that come with various agency relationships. It highlights the importance of the agent's financial involvement in the agency, which can significantly influence the agent's motivations and duties.