California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 9 — Agency, Chapter 1 — Agency in General, Article 2 — Authority of Agents, Section 2306
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 upon the principal.
Notes
Bars an agent from having actual or ostensible authority to commit an act that is a fraud on the principal when the person dealing with the agent knows or suspects the act is fraudulent. The prohibition applies regardless of whether the claimed authority is actual or ostensible.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 2306 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-4/title-9/chapter-1/article-2/section-2306