Sec 197- it may be expressed or implied Sec 198- must have knowledge of fact Sec 199- it ratifies the whole transaction Sec 200- cant b done if injures third party.
Ratification is essentially a retrospective
granting of approval for the actions of the agent or the person purporting to be an agent acting on behalf of the principal. The granting of authority effectively makes the exercise of the agents authority valid from the time the agent first took part in the unauthorised act, as opposed to the time at which the principal ratifies the unauthorised act.
The doctrine of ratification comes into play when
a person has done an act on behalf of another without his knowledge or consent .the doctrine gives the person on whose behalf the act is done an option either to adopt the act by ratification or to disown it . Ratification is thus a kind of affirmation of unauthorized act
A Ratification when fairly made , will have the
same effect as an original authority has, to bind the principal, not only in regard to the agent himself but in regard to third persons; and the ratification relates back to the inception of the transaction, and has a complete retrospective efficacy.
May occur when:
(1) A person acts on behalf of a principal and
enters a contract with a third party, despite
lacking authority to do so, then the principal may ratify or affirm the unauthorized action. (2) An agent exceeds the authority given to them
by the principal, the principal may ratify or
affirm the excessive authority.
Agent when contracting must clearly be acting
as an agent, not for themselves, and the third party must be aware of this. Principal must exist at the time the agent contracts. Principal must have the required capacity to contract both at the time of the agents unauthorised conduct and at the time of ratification.
Can only be made by the principal for whom
the agent was acting or purporting to act when the contract was made. Ratification must take place within a reasonable time. Principal must ratify the whole contract. Principal must have full knowledge of the details of the transaction.
Establishes the relationship of principal and
agent between person ratifying an the person doing the act.
Establishes a relationship of contract between
the principal and the third party
Ratification saves the interest of the working
party..
That is it protects the interest of the agent if he
works for the interest of his principal even beyond the authority given to him by his principal.