Section 196 The Indian Contract Act, 1872

Section 196 of the Indian Contract Act, 1872 deals with the ratification of acts done without authority.

🔹 Section 196 – Right of person as to acts done for him without his authority: Effect of ratification

"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 ratifies them, the same effects will follow as if they had been performed with his authority."

✅ Explanation:

If someone acts on behalf of another without having authority (i.e., not a legally appointed agent), the person on whose behalf the act was done can choose to:

Ratify (approve) the act → making it valid and binding as if authorized from the start.

Disown (reject) the act → in which case no legal obligation arises.

Once ratified, the act is treated as if it was authorized from the beginning.

📌 Example:

A, without B's authority, buys goods on B's behalf.

If B later approves (ratifies) this act, the transaction becomes binding on B, and B must pay for the goods.

🔁 Related Concept:

This section is foundational for the doctrine of ratification, which plays an important role in agency law.

 

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