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Source Principal Liability Complete Hawaii Bar Exam Topic Index List 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 record contains both written proof and disputed oral testimony. The parties disagree about the legal effect of those facts. Which answer gives the best resolution?

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Resolve the dispute on equitable fairness alone without identifying the governing doctrine or its limits. Import a rule from a nearby issue instead of applying the rule triggered by these facts. 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. Stop the analysis once the proponent states a plausible rule, without addressing the strongest counterargument.

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