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Conditions Of A Valid Ratification-Performance And Discharge Of Contracts
Business Environment and Law-Performance And Discharge Of Contracts
Conditions Of A Valid Ratification-Performance And Discharge Of Contracts
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Ratification is enforceable only when the following conditions are fulfilled.
Conditions Of A Valid
Ratification
Ratification is enforceable only when the following conditions are fulfilled.
Must contract as agent: The agent must contract as agent for a principal in contemplation; or the agent should not make the contract for himself.
Only named principal can ratify: Only that principal who was named or was identifiable at the time of the contract, can ratify the contract. He can do so, even if the agent never intended that he should do so.Example: A makes a contract with B on behalf of his uncle, D. Later on C, A’s elder brother want to have the benefit of the contract and wants to ratify the same. C cannot do so. D, when comes to know of the contract, wants to ratify the same; he can do so and enjoy the benefit of the contract even if A does not want it.
The principal should be in existence: Mere contemplation at the time of the contract is not sufficient. If the principal was not in existence at the time of the contract, he cannot ratify such contract.
The Principal must be competent to contract at the date of the contract as well as at the date of ratification. Thus, a minor cannot ratify a contract made on his behalf after becoming a major.
The principal must have full knowledge of the material facts (Sec. 198): “No valid ratification can be made by a person whose knowledge of the facts of the case is materially defective.”
The principal must ratify the whole transaction (Sec. 199).
The principal must ratify the contract within a reasonable time after the contract is made.
The act to be ratified should not be void or illegal, though ratification can be made of voidable contracts or even of tortuous acts.
Ratification of unauthorized act cannot injure third person.
Ratification is enforceable only when the following conditions are fulfilled.
Must contract as agent: The agent must contract as agent for a principal in contemplation; or the agent should not make the contract for himself.
Only named principal can ratify: Only that principal who was named or was identifiable at the time of the contract, can ratify the contract. He can do so, even if the agent never intended that he should do so.Example: A makes a contract with B on behalf of his uncle, D. Later on C, A’s elder brother want to have the benefit of the contract and wants to ratify the same. C cannot do so. D, when comes to know of the contract, wants to ratify the same; he can do so and enjoy the benefit of the contract even if A does not want it.
The principal should be in existence: Mere contemplation at the time of the contract is not sufficient. If the principal was not in existence at the time of the contract, he cannot ratify such contract.
The Principal must be competent to contract at the date of the contract as well as at the date of ratification. Thus, a minor cannot ratify a contract made on his behalf after becoming a major.
The principal must have full knowledge of the material facts (Sec. 198): “No valid ratification can be made by a person whose knowledge of the facts of the case is materially defective.”
The principal must ratify the whole transaction (Sec. 199).
The principal must ratify the contract within a reasonable time after the contract is made.
The act to be ratified should not be void or illegal, though ratification can be made of voidable contracts or even of tortuous acts.
Ratification of unauthorized act cannot injure third person.
Ratification
by Govt: Acts done by public servant in the name of the Government may be ratified by
subsequent approval in the same manner as private transaction.
Tags : Business Environment and Law-Performance And Discharge Of Contracts
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