The appellant sued the respondent for breach of contract after the respondent refused to deliver 50,000 tons of sulphur.
The contract was negotiated by the respondent's agent, whose actual authority was restricted internally without notice to the appellant.
The trial judge found the respondent bound by the contract and awarded damages for loss of profits based on the rising market price of sulphur.
The Appellate Division reversed the decision on liability and reduced the damages.
The Supreme Court of Canada allowed the appeal, holding that the agent had apparent authority to bind the respondent, and restored the trial judge's assessment of damages.
