The principal shall be bound for the care, diligence, and fidelity of his agent in his business, and hence he shall be bound for the neglect and fraud of his agent in the transaction of such business. History. Orig. Code 1863, § 2179; Code 1868, § 2175; Code 1873, § 2201; Code 1882, § 2201; Civil Code 1895, § 3029; Civil Code 1910, § 3601; Code 1933, § 4-311.