Under the Sole Actor Doctrine a principal is charged with the knowledge of his agent.
It contemplates that agent must have ostensibly endeavored to benefit his principal, and even though he did not do so and his acts were for his personal benefit, possibly through defalcation, the third party who obligated himself must have been under the impression that he was dealing with the principal.
General American Life Ins. Co. v. Anderson, D.C. Ky., 46 F. Supp. 189. 195, 196, 198
It is based on the presumption that by reason of the relationship between an agent and his principal the principal is presumed to have been told everything the agent has done and presumed to have known of his actions and promises.
Federal Deposit Ins. Corporation v. Pendleton, D.C. Ky., 29 F Supp. 779, 782, 783
Black's Law Dictionary, Fifth Edition, p. 1248
This is taken from:
UNITED
STATES OF AMERICA, Plaintiff v. LEROY MUNCY, et al, Defendant
case
# 4-07-cv-00435WRW
UNITED
STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF ARKANSAS, LITTLE
ROCK DIVISION
2007
U.S. Dist. Ct. Motions 895686;
2008
U.S. Dist. Ct. Motions LEXIS 4130
April
21, 2008
