Legal Dictionary of Pakistan

power coupled with an interest

A power to do some act, conveyed along with an interest in the subject matter of the power. ( A power coupled with an interest is not held for the benefit of the principal, and it is irrevocable due to the agent's interest in the subject property. For this reason, some authorities assert that it is not a true agency power. -Also termed power given as security; proprietary power. Cf. naked power. "[Sluppose that the principal borrows money from the agent and by way of security authorizes the agent to sell Blackacre if the loan is not repaid and pay himself out of the proceeds. In such case there is no more reason why the principal should be permitted to revoke than if he had formally conveyed or mortgaged Blackacre to the agent. Hence it would be highly unfair to the agent to allow his principal to revoke. The reason why such a case is not properly governed by the considerations usually making an agency revocable is that this is in reality not a case of agency at all. In a normal agency case the power is conferred upon the agent to enable him to do something for the principal while here it is given to him to enable him to do something for himself. Coupled with an interest means that the agent must have a present interest in the property upon which the power is to operate." Harold Gill Reuschlein & William A. Gregory, The Law of Agency and Partnership § 47, at 99 (1990).