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.
Structure Montana Code Annotated
Title 28. Contracts and Other Obligations
28-10-401. What authority agent has
28-10-402. Actual authority defined
28-10-403. Ostensible authority defined
28-10-404. When and as to whom agent's authority restricted
28-10-405. Implied powers of agent
28-10-406. Interpretation of authority given partly in general and partly in specific terms
28-10-407. Statutory exceptions to general authority
28-10-408. When agent may disobey instructions
28-10-409. No authority to defraud principal
28-10-410. through 28-10-420 reserved
28-10-421. What included in authority to sell personal property