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Source Principal Liability Complete Delaware Bar Exam Topic Index List Matched to this deck.

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The parties dispute the legal effect of a contested transaction. A manager signed a supply agreement after receiving mixed instructions from the owner. Another actor changed position after relying on the relevant statement, document, or official action. The parties disagree about the legal effect of those facts. Which analysis is most consistent with these facts?

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Assume the doctrine applies because one element appears satisfied, even if the remaining elements are contested. Stop the analysis once the proponent states a plausible rule, without addressing the strongest counterargument. The court should resolve the dispute by applying the operative rule to the material facts: The answer should identify the governing rule for Principal Liability and apply it to the operative facts. Import a rule from a nearby issue instead of applying the rule triggered by these facts.

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