Opinion ID: 884211
Heading Depth: 1
Heading Rank: 8

Heading: Whether, as a matter of law, the ostensible agency was created.

Text: An agency may be created and an authority may be conferred by a precedent authorization or a subsequent ratification. Section 28-10-201, MCA. A ratification can be made ... by knowingly accepting or retaining the benefit of the act. Section 28-10-211, MCA. We have already stated that an ostensible agency is created when the principal intentionally or by want of ordinary care causes a third person to believe another to be his agent who is not really employed by him. Section 28-10-103, MCA; Turjan, 901 P.2d at 81-82. We also stated that an ostensible agency may be implied from the conduct and from all the facts and circumstances in the case and may be shown by circumstantial evidence. Butler, 540 P.2d at 965. The Halls, by retaining the benefit of the improved road, ratified John's actions in hiring Youderian for the road improvement project. Moreover, the conduct of the Halls of consulting John on certain aspects of the cabin construction and of including John in the majority of the discussions regarding the cabin made it appear that the Halls considered John to be their agent in some respects. Consequently, the Halls, by want of ordinary care in their behavior regarding John led Youderian to believe that John was the Halls' agent and that John had the authority to hire Youderian to improve the road. Accordingly, we hold that, as a matter of law, an agency relationship was created regarding the road improvement project.