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Express?         YES NO An agency exists Is there an implied actual agency?       Can agency be IMPLIED from the FACTUAL CIRCUMSTANCES?         YES NO Agency YES Can an agency be implied by OPERATION OF LAW? - Custom or trade - business efficacy - Constructive Authority - Necessity or cohabitation - Usual authority       YES NO   Has principal ratified the arrangement?       YES   NO AGENCY EXISTS, but may be apparent (ostensible authority - take next step for checking this)