Question

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. This is known as ______.

• A. Agency is coupled with interest
• B. Agency by ratification
• C. Agency by emergency
• D. Agency by necessity

Answer 1

The correct option is A Agency is coupled with interest

Section 202 talks about 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 is known as Agency coupled with interest.