An agency coupled with an interest can be terminated by what event?

An agency coupled with an interest is a type of agency relationship where the agent has a personal stake in the subject matter of the agency. This means that the agent not only represents the principal but also has an interest in the outcome of the agency relationship. Because of this vested interest, the agency does not terminate automatically upon the death or incapacity of the principal. However, it can be terminated by the death of the agent or by the incapacity of the agent, since the agent's ability to act is fundamentally altered.

In this context, the correct answer indicates that both events—death and incapacity—are significant in terminating an agency coupled with an interest. The relationship is more stable compared to other types of agency but is still subject to certain external changes that can dissolve the arrangement. Therefore, recognizing the nuances of when an agency coupled with an interest can end is critical for understanding the contractual relationships that govern agency law.