Indian Contract Act Section 198 — Knowledge requisite for valid ratification

CHAPTER X AGENCY — Ratification

Commercial / Corporate

Summary

Ratification is only valid if the person making it has accurate and complete knowledge of the facts of the case. If that person’s understanding of the facts is materially defective—meaning significantly wrong or incomplete—then the ratification cannot be considered valid.

Official Text

No valid ratification can be made by a person whose knowledge of the facts of the case is materially defective.