Which of the following is true regarding an agency coupled with an interest?

Multiple Choice

• It falls within the general rule that either party has the power to terminate an agency.

• It is an exception to the general rule that either party has the power to terminate an agency and arises when the power is given as a security.

• It is an exception to the general rule that either party has the power to terminate an agency and arises when a contract of employment between the principal and agent exists.

• It is an exception to the general rule that either party has the power to terminate an agency and arises when there is a substantial increase in the principals need for the agent.