Exceptions to the theory of imputed knowledge

The general rule is that the principal is chargeable with and bound by the knowledge of or notice to his agent, received while the latter was acting as such. The well-established exception is where the conduct and dealings of the agent are such as to raise a clear presumption that he will not communicate to the principal the facts in controversy. (G.R. No. 114311)

[1] The agent maintains interests that are adverse to those of the principal;
[2] The person invoking the theory of imputed knowledge is in collusion with the agent for the purpose of defrauding the principal; and
[3] The agent receives confidential information.

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