Agent cannot have authority to defraud principal

An agent can never have authority, either actual or ostensible, to do an act which is, and is known or suspected by the person with whom he deals to be, a fraud on the principal. Source: CivC 1877, § 1345; CL 1887, § 3968; RCivC 1903, § 1664; RC 1919, § 1246; SDC 1939, § 3.0208.