American Surety Co. v. Pauly
In American Surety Co. v. Pauly, 170 U. S. 133, 156, 157, 18 S. Ct. 552, 561, 42 L. Ed. 977 (1898), the court said:
"The presumption that the agent informed his principal of that which his duty and the interests of his principal required him to communicate does not arise where the agent acts or makes declarations not in execution of any duty that he owes to the principal, nor within any authority possessed by him, but to subserve simply his own personal ends, or to commit some fraud against the principal. In such cases the principal is not bound by the acts or declarations of the agent unless it be proved that he had at the time actual notice of them, or, having received notice of them, failed to disavow what was assumed to be said and done in his behalf."