Indian Contract Act, 1872 · Chapter X: Agency · Ratification
Section 196: Right of person as to acts done for him without his authority
In plain words
When someone acts on another's behalf without their knowledge or authority, the other can choose to ratify or disown the acts. If ratified, the acts have the same effect as if authorised from the start.
A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.
Read the in-depth explanation, with key Supreme Court rulings ↓
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.
Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Understanding this section
Section 196 allows a person to ratify, or disown, acts done on his behalf without his knowledge or authority. Ratification relates back: the act is treated as if it had been authorised from the start.
Conditions for valid ratification
- The act was done on behalf of the person ratifying.
- The principal existed and was competent at the time of the act.
- The principal has full knowledge of the material facts (section 198).
- The whole transaction is ratified, not just part (section 199).
- Ratification does not prejudice third parties (section 200).
Express or implied
Ratification can be express, or implied from conduct, such as accepting the benefit of the transaction (section 197).
Companies and pre-incorporation contracts
A company cannot ratify a contract made before it existed, because it was not in existence when the act was done; special provisions of company and specific relief law deal with such contracts.
Common mistakes
- Allowing partial ratification.
- Allowing ratification that destroys third party rights.
Read with: Section 197 Indian Contract Act, 1872, Section 198 Indian Contract Act, 1872, Section 200 Indian Contract Act, 1872
Prepared with AI assistance as a study aid. Every ruling listed was checked against the Supreme Court's own judgments on this site, and quoted words appear in those judgments; linked names open the full judgment. Read the judgments themselves before relying on them. Not legal advice.
Supreme Court judgments citing the section 196
No Supreme Court judgment in our database cites this section yet.