Indian Contract Act Section 200 — Ratification of unauthorized act cannot injure third person
CHAPTER X AGENCY — Ratification
Commercial / Corporate
Summary
An act done by one person on behalf of another, without that other person's authority, cannot be made valid through later ratification if the act, had it been authorised, would have caused a third person to suffer damages or would have ended any right or interest belonging to that third person. In such cases, ratification cannot give the act that harmful effect on the third person.
Official Text
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