BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the principal must ratify at least one part of the transaction
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the principal must ratify after the third person withdraws from the transaction
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the principal must have some knowledge of the material facts
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the third person must have believed that he or she was making a contract with the principal
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Detailed explanation-1: -The transaction must be capable of ratification i.e must not be illegal or void. The “principal” must ratify the transaction in its entirety. The “principal” must ratify the transaction within a reasonable time.
Detailed explanation-2: -The doctrine of ratification is concerned with acts performed without authority by an agent in the name of a principal. In short, ratification occurs whenever the ratifying party clearly manifests that he has adopted the unauthorized transaction effected by his agent purportedly on his behalf.
Detailed explanation-3: -A principal is liable to third parties for contracts that an agent makes if the agent is acting within the scope of the agent’s express, implied, emergency, or apparent authority.
Detailed explanation-4: -As per S. 198 of Indian Contract Act, 1872, If A person is ratifying act of another person, then such person must have complete knowledge of facts. Ratification is considered to be invalid if a person ratifies the act with knowledge of the facts of the case is not complete.