Principal v. Purchaser Regarding Intermediary's Payment Authority

The dispute arose from a transaction where an intermediary, acting under a mandate, sold goods to a purchaser but failed to remit the agreed-upon price to the principal, who then sued the purchaser, claiming the sale was null due to the intermediary's lack of authorization for final settlement, despite the purchaser having paid the intermediary in good faith. The court held that the purchaser, having dealt with the intermediary who appeared to have the authority to conclude the sale and receive payment on behalf of the principal, was validly discharged from their obligation to pay, affirming that the principal’s recourse lies against the defaulting intermediary, not against the third party who acted in good faith based on apparent authority.