An Israeli company made three orders from Germany but after the first arrived cancelled the other two. An employee of the supplier emailed the company that once the goods are sold the prepayments will be reimbursed. Later the supplier argued that the employee was not authorized to waive the prepayment.
The Court held that if an employee appears to be authorized to be authorized such employee’s actions will obligate the company even if the employee does not bear authority, as long as the third party was unaware of the lack of authority. Thus, the obligation of the employee to return the prepayment obligates the company.