Agent Authority and Principal Liability in Contractual Dispute

A contractual dispute arose regarding the interpretation of an agent's authority to bind a principal to an agreement, specifically concerning whether the agent acted within the scope of express or implied powers granted by the principal for that transaction. The court of cassation quashed the lower court's ruling because the lower court failed to adequately examine the evidence demonstrating the limits of the agent's mandate and improperly presumed the validity of the contract based on an overly broad interpretation of the initial authorization, thereby failing to establish the necessary legal basis for holding the principal liable for the agent's unauthorized act.