As against a principal both principal and agent are deemed to have notice of whatever either has notice of, and ought, in good faith and the exercise of ordinary care and diligence, to communicate to the other.

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Source: CivC 1877, § 1368; CL 1887, § 3991; RCivC 1903, § 1687; RC 1919, § 1269; SDC 1939, § 3.0305.