Which term describes an agency relationship in which the agent holds an interest in the subject of the agency that cannot be canceled and may not terminate at death?

• A. Designated agent
• B. Single agency
• C. Seller as principal
• D. Agency coupled with interest

Answer: (D)

An agency coupled with an interest describes a relationship where the agent has a real stake in the subject of the agency, and that stake cannot be canceled or terminated by death. Because the agent’s interest secures the agent’s rights or compensation, the arrangement is effectively irrevocable and continues beyond the principal’s death. This protects the agent’s ability to pursue the subject matter and ensures the agent won’t be cut off simply because the principal dies or tries to revoke the agency. A common illustration is a broker who is given an interest in the property to secure the broker’s commission; that interest in the subject matter makes the agency durable and not terminable at the principal’s discretion. The other terms describe ordinary agency relationships that can be revoked or terminated and do not involve a vested security interest in the subject matter.