Section 199 The Indian Contract Act, 1872

Section 199 of the Indian Contract Act, 1872 states:

Section 199 – Right of person as to acts done for him without his authority

When a person ratifies the acts done on his behalf without authority, he may not rescind the same action if he had full knowledge of the facts at the time of ratification, or if he intentionally adopted the act without inquiry.

Explanation:

If someone acts on your behalf without your prior permission, and you later approve (ratify) it, you cannot go back and reject that act later, provided:

You had full knowledge of the facts when you approved, or

You chose not to inquire and knowingly accepted the act.

Key Points:

Applies to ratification under agency law.

Once an act is ratified knowingly, it is binding.

Prevents principals from accepting benefits but denying responsibility.

Illustration:

A, without B’s authority, buys goods on B’s behalf. B, after knowing all the facts, accepts the goods. B cannot later deny the transaction claiming it was done without his authority.

 

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