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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. 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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Reject the claim or defense solely because the opposing party disputes a required fact. Assume the doctrine applies because one element appears satisfied, even if the remaining elements are contested. The court should resolve the dispute by applying the operative rule to the material facts: The answer should identify the governing rule for Agent Duties and apply it to the operative facts. Treat the formal label attached to the claim or defense as conclusive and disregard facts bearing on the rule's elements.

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