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Section 200, Contract Act 1872: Ratification Of Unauthorised Act Cannot Injure Third Person

Section 200 under the Chapter X (Agency - Appointment and authority of agents) of the Contract Act, 1872 of India - 'Ratification of unauthorised act cannot injure third person', is reproduced hereunder:—

“An act done by one person on behalf of another, without such other person's authority, which, if done with authority would have the effect of subjecting a third person to damages, or of terminating any right or interest of a third person, cannot, by ratification, be made to have such effect.

Illustrations

(a) A, not being authorised thereto by B, demands on behalf of B, the delivery of a chattel, the property of B, from C, who is in possession of it. This demand cannot be ratified by B, so as to make C liable for damages for his refusal to deliver.

(b) A holds a lease from B, terminable on three months' notice. C, an unauthorised person, gives notice of termination to A. The notice cannot be ratified by B, so as to be binding on A.”

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