Section 196 of The Indian Contract Act, 1872
Right of person as to acts done for him without his authority.
Where acts are done by one person on behalf of another, but without his knowledge or authority, he may elect to ratify or to disown such acts. If he ratify them, the same effects will follow as if they had been performed by his authority.
Summary
- Under Section 196 of the Indian Contract Act, 1872, a person has the right to either ratify or disown acts done on their behalf without their knowledge or authority.
- Ratification means giving formal approval to an unauthorized act after it has already occurred.
- If the person elects to ratify the unauthorized acts, the same effects follow as if the acts had been performed by their prior authority.
Practical examples
FAQ
1. What does ratification mean under Section 196 of the Indian Contract Act, 1872?
Under Section 196 of the Indian Contract Act, 1872, ratification means electing to accept and approve an act done by another person on your behalf without your prior knowledge or authority.
2. What choices does a person have under Section 196 of the Indian Contract Act, 1872 when someone acts on their behalf without authority?
Under Section 196 of the Indian Contract Act, 1872, the person can choose either to ratify, meaning they accept the act, or to disown, meaning they reject the act.
3. What is the legal effect of ratifying an act under Section 196 of the Indian Contract Act, 1872?
Under Section 196 of the Indian Contract Act, 1872, if a person ratifies an act, the same legal effects follow as if the act had been performed with their prior authority from the beginning.
Test yourself
1.Under Section 196 of the Indian Contract Act, 1872, what are the two choices available to a person when another person acts on their behalf without their authority?
2.Under Section 196 of the Indian Contract Act, 1872, what is the legal consequence if a person elects to ratify an unauthorized act?
3.Under Section 196 of the Indian Contract Act, 1872, what is the impact on a person's rights if they decide to disown an unauthorized act done on their behalf?
4.Under Section 196 and Section 197 of the Indian Contract Act, 1872, if a person accepts interest from a loan that was made on their behalf without authority, what does this conduct represent?