Although agency can also arise by virtue of statute and by the principal's later ratification of the unauthorized agent's earlier deeds, perhaps the most fascinating problems arise under what is sometimes called "agency by estoppel," referring to situations in which an "agent" acts with the apparent or ostensible authority
of the principal.
The court made it clear that could be construed to mean that the hospitalists, although not employed the hospital, were its agents under a theory of ostensible authority
, such the hospital could be held vicariously liable for their conduct, the court concluded the lower court did not err.
Buxton said that the deal was signed by Sanderson ``with the council's ostensible authority
,'' and added: ``Those who dealt with Doncaster racecourse dealt with Mr Sanderson.
In fact, there are many scenarios in which a hospital may be held liable for the acts of one who is not its employee, the most obvious of which are cases in which a hospital has allowed one who is not its employee to act with ostensible authority
as a representative of the hospital.
It is respectfully submitted that had the plaintiff been able to prove that as a result of her seeing the hospital presenting itself to the community as a birthing hospital, and she, acting in reliance thereon, chose to deliver her child at the hospital, the plaintiff would have had a much stronger case of either apparent or ostensible authority