Ratification- Meaning

Ratification confirmation; ratification is

the adoption of a contract made on behalf
of some one whom he did not authorize,
which relates back to the execution of the
contract , and renders it obligatory from
the outset
Approval, by word or conduct of that which
was improperly or unauthorisedly
performed in the first instance;

Ratification In Indian
Contract Act

Ratification is dealt in Sec 196 to Sec

200
Sec 196- ratification
Sec 197- it may be expressed or
implied
Sec 198- must have knowledge of fact
Sec 199- it ratifies the whole
transaction
Sec 200- cant b done if injures third
party.

What is ratification

Ratification is essentially a retrospective

granting of approval for the actions of the
agent or the person purporting to be an agent
acting on behalf of the principal. The granting
of authority effectively makes the exercise of
the agents authority valid from the time the
agent first took part in the unauthorised act,
as opposed to the time at which the principal
ratifies the unauthorised act.

When comes the

ratification
The doctrine of ratification comes into
play when a person has done an act on
behalf of another without his
knowledge or consent .the doctrine
gives the person on whose behalf the
act is done an option either to adopt
the act by ratification or to disown it .
Ratification is thus a kind of affirmation
of unauthorized act

What when ratification made

A Ratification when fairly made , will

have the same effect as an original
authority has, to bind the principal, not
only in regard to the agent himself but
in regard to third persons; and the
ratification relates back to the
inception of the transaction, and has a
complete retrospective efficacy.

Agency by ratification

May occur when:

(1) A

person acts on behalf of a principal

and enters a contract with a third
party, despite lacking authority to do
so, then the principal may ratify or
affirm the unauthorized action.

(2) An

agent exceeds the authority given

to them by the principal, the principal
may ratify or affirm the excessive

Conditions required for

valid ratification
Agent when contracting must clearly be
acting as an agent, not for themselves,
and the third party must be aware of this.
Principal must exist at the time the agent
contracts.
Principal must have the required capacity
to contract both at the time of the
agents unauthorised conduct and at the
time of ratification.

Conditions required for

ratification (cont.)

Can only be made by the principal for

whom the agent was acting or
purporting to act when the contract
was made.
Ratification must take place within a
reasonable time.
Principal must ratify the whole
contract.
Principal must have full knowledge of
the details of the transaction.

Effects Of Ratification

Establishes the relationship of principal

and agent between person ratifying an
the person doing the act.

Establishes a relationship of contract

between the principal and the third
party

Importance of Ratification

Ratification saves the interest of the

working party..

That is it protects the interest of the

agent if he works for the interest of his
principal even beyond the authority
given to him by his principal.