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Ratification is dealt in Sec 196 to Sec 200Sec 196-
ratification
Sec 197- it may be expressed or impliedSec 198- must have
knowledge of factSec 199- it ratifies the whole transaction
Sec 200- cant b done if injures third party.
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Ratification is essentially a retrospectivegranting of approval
for the actions of theagent or the person purporting to be an
agentacting on behalf of the principal. The grantingof authority
effectively makes the exercise ofthe agents authority valid from
the time the
agent first took part in the unauthorised act,as opposed to the
time at which the principalratifies the unauthorised act.
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The doctrine of ratification comes into play whena person has
done an act on behalf of another
without his knowledge or consent .thedoctrine gives the person
on whose behalf theact is done an option either to adopt the act
byratification or to disown it . Ratification is thusa kind of
affirmation of unauthorized act
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A Ratification when fairly made , will have thesame effect as an
original authority has, to
bind the principal, not only in regard to theagent himself but
in regard to third persons;and the ratification relates back to
theinception of the transaction, and has acomplete retrospective
efficacy.
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May occur when:
(1) A person acts on behalf of a principal andenters a contract
with a third party, despitelacking authority to do so, then the
principalmay ratify or affirm the unauthorized action.
(2) An agent exceeds the authority given to themby the
principal, the principal may ratify oraffirm the excessive
authority.
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Agent when contracting must clearly be actingas an agent, not
for themselves, and the third
party must be aware of this.Principal must exist at the time the
agentcontracts.
Principal must have the required capacity tocontract both at the
time of the agentsunauthorised conduct and at the time
ofratification.
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Can only be made by the principal for whomthe agent was acting
or purporting to act when
the contract was made.Ratification must take place within
areasonable time.
Principal must ratify the whole contract.Principal must have
full knowledge of thedetails of the transaction.
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Establishes the relationship of principal andagent between
person ratifying an the person
doing the act.
Establishes a relationship of contract between
the principal and the third party
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Ratification saves the interest of the workingparty..
That is it protects the interest of the agent if heworks for the
interest of his principal even
beyond the authority given to him by hisprincipal.
