BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -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-2: -An agent, having an authority to do an act, has authority to do every lawful thing which is necessary in order to do such act. An agent having an authority to carry on a business, has authority to do every lawful thing necessary for the purpose, or usually done in the course, of conducting such business.

Detailed explanation-3: -Agency by Ratification (Sections 169-200): Where a person not having any authority act as agent, or act beyond its authority, then the principal is not bound by the contract with the agent in respect of such authority. But the principal can ratify the agent’s transaction and accept liability.

Detailed explanation-4: -Unauthorised acts by an agent will usually be acts which exceed his actual authority. For example, an estate agent authorised to agree with a purchaser to a price specified by the vendor will be committing an unauthorised act if he agrees to a price which is lower than the specified price.