Agency Coupled with an Interest in Florida
An agency coupled with an interest is a special form of agency relationship in which the agent holds a personal interest in the subject matter of the agency, making the agency irrevocable by the principal. This structure provides the agent with protections beyond those available in an ordinary agency.
Irrevocability
Unlike a standard agency relationship, which the principal can terminate at any time, an agency coupled with an interest cannot be unilaterally revoked. The agent's authority survives the principal's attempted revocation, death, or incapacity. Florida courts enforce this irrevocability to protect the agent's underlying investment or security interest in the subject matter of the agency.
Practical Applications
In Florida practice, agencies coupled with an interest appear in several contexts. A managing member of an LLC who holds both management authority and an ownership stake operates under this doctrine. A broker who advances funds to a property owner secured by the listing operates as an agent with an interest. A power of attorney holder who has a financial stake in the property subject to the power may also qualify.
Related Terms
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Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC