Essay Flashcards

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. One party invokes ordinary practice in the field, while the other argues that the practice was unreasonable in this setting.
One side seeks to bind the business or its owners; the other argues that the requested liability or remedy exceeds what the governing documents, statutes, or party conduct allow.
How should the court resolve the dispute? Discuss the strongest arguments for each side, state the controlling rule, apply it to the material facts, and explain the likely remedy or consequence.