Chapter X - Agency
Section 196
Section 196: Ratifying unauthorised acts
A person may ratify or disown acts done on that person’s behalf without prior authority.
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This article is for general information. Refer to the Indian Contract Act, 1872 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
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.
Rule and business relevance
Ratification produces the same effects as if the acts had originally been authorised. The subsequent provisions qualify how ratification operates.
Limits and related provisions
An act must have been done on the person’s behalf. Check knowledge, the whole transaction and protection of third persons under sections 198–200.
Hypothetical business example
Hypothetical example: A buyer’s representative places an unauthorised order on the buyer’s behalf. The buyer considers whether to adopt it after reviewing the facts.
Practical decision flow
Identify the unauthorised act and on whose behalf it was done.
Establish the principal’s informed decision to ratify or disown.
Check the limitations in the surrounding ratification provisions.
Check the applicable legal framework
This guide explains the central provision. Applicable State amendments, the agreement, transaction date and other governing laws can affect its application. Check the current legal framework before relying on it for a commercial decision.
Practical checklist
Do
- Identify the unauthorised act and on whose behalf it was done.
- Establish the principal’s informed decision to ratify or disown.
- Check the limitations in the surrounding ratification provisions.
Avoid
- An act must have been done on the person’s behalf. Check knowledge, the whole transaction and protection of third persons under sections 198–200.
Glossary
- Ratification
- Subsequent adoption of an act done on one’s behalf without authority.
- Disowning
- Declining to adopt the unauthorised act.
Frequently asked questions
Can later adoption have legal effect?
Yes. Ratification has the effect stated as if authority existed.
Are there further conditions?
Yes. Sections 198–200 address knowledge, whole transactions and third-person protection.
Must the act have been on the principal’s behalf?
That is the setting expressly described.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026