Implied agency is best described as being created when:
Correct Answer
B) An agent consistently acts on behalf of a party without a written agreement, leading that party to reasonably believe an agency relationship exists
Implied agency arises from the conduct of the parties rather than a written or express agreement. In Montana, if an agent acts in ways that would lead a reasonable person to believe an agency relationship exists — without a formal written agreement — an implied agency may be established. This is why agents must be careful about their conduct with unrepresented parties.
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