28-10-409. No authority to defraud principal. An agent can never have authority, either actual or ostensible, to do an act that is and is known or suspected by the person with whom the agent deals to be a fraud upon the principal.

     History: En. Sec. 3082, Civ. C. 1895; re-en. Sec. 5421, Rev. C. 1907; re-en. Sec. 7936, R.C.M. 1921; Cal. Civ. C. Sec. 2306; Field Civ. C. Sec. 1224; re-en. Sec. 7936, R.C.M. 1935; R.C.M. 1947, 2-113; amd. Sec. 802, Ch. 56, L. 2009.