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Source Actual and Apparent Authority Mississippi Bar Exam Topic Index Matched to this deck.

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After a business relationship breaks down, owners, managers, and outsiders dispute who is bound and who must pay. A manager signed a supply agreement after receiving mixed instructions from the owner. The disputed action was partly authorized but exceeded an important limitation. The parties disagree about the legal effect of those facts. Which option gives the best analysis?

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Resolve the dispute on equitable fairness alone without identifying the governing doctrine or its limits. The court should resolve the dispute by applying the operative rule to the material facts: The answer should identify the governing rule for Actual and Apparent Authority and apply it to the operative facts. Stop the analysis once the proponent states a plausible rule, without addressing the strongest counterargument. Import a rule from a nearby issue instead of applying the rule triggered by these facts.

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