basically,
Ron's camp: the AD is an authorized agent of KSU and IAC, he (and possibly others) were aware of this contract, Ron had no reason to believe the AD wasn't authorized to make this negotiation, take it up with Bob (the authorized agent) not Ron if you have a problem.
KSU: Bob didn't have authority to make this contract, KSU (the principal) was never made aware of this contract, Bob broke his fiduciary duty.
Hopefully they just settle (again).