What is the test for establishing an agency?

California, United States of America


The following excerpt is from Bay Guardian Co. v. New Times Media LLC, A122448, No. CGC-04-435584 (Cal. App. 2010):

An agency may arise by "express agreement" or " 'may be implied from the conduct of the parties. [Citation.]' [Citation.]" (van't Rood v. County of Santa Clara, supra, 113 Cal.App.4th 549, 571; see also Michelson v. Hamada, supra, 29 Cal.App.4th 1566, 1579.) "However, an agency cannot be created by the conduct of the agent alone; rather, conduct by the principal is essential to create the agency. Agency 'can be established either by agreement between the agent and the principal, that is, a true agency [citation], or it can be founded on ostensible authority, that is, some intentional conduct or neglect on the part of the alleged principal creating a belief in the minds of third persons that an agency exists, and a reasonable reliance thereon by such third persons.'

Page 38

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