Alok consigns 500 bales of jute to Aswin, who has made advance to him on such jute. Alok desires, Aswin to sell the jute and to repay himself out of the sale prices and recoup the advance. Which type of agency it is? Can

The problem asked in the question is related to the agency coupled with interest. An agency is coupled with an interest when the agent has an interest in the authority granted to him or when the agent has an interest in the subject matter with which he is authorised to deal. Where the agent was appointed to enable him to secure some benefit already owed to him by the principal, the agency was coupled with an interest. An agency coupled with interest cannot be terminated in the absence of a contract to the contrary to the prejudice of such interest. The principal laid down in Section 202 of the Indian Contract Act, 1872, applies only if the following conditions are fulfilled: The interest of the agent should exist at the time of creation of agency and should not have arisen after the creation of agency. Authority given to the agent must be intended for the protection of the interest of the agent. The interest of the agent in the subject matter must be substantial and not ordinary. The interest of the agent should be over and above his remuneration. Mere prospect of remuneration is not sufficient interest.