Indian Contract Act Section 196 — Right of person as to acts done for him without his authority. Effect of ratification
CHAPTER X AGENCY — Ratification
Commercial / Corporate
Summary
When someone does an act on behalf of another person, but without that person's knowledge or permission, the person on whose behalf the act was done has a choice. They may either accept the act as their own, which is called ratifying it, or they may reject it, which is called disowning it.
If they choose to ratify the act, the legal result is the same as if they had given their permission before the act was done. In other words, ratification makes the act as valid and binding as if it had been originally authorised.
Official Text
Where acts are done by one person on behalf of another, but without his knowledge or authority, he may elect to ratify or to disown such acts. If he ratify them, the same effects will follow as if they had been performed by his authority.