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A without authority of B lends money of B to C. Afterwards, B accepts interest on money from C. What…

Section 197 permits express or implied ratification. Its illustration (c) describes an unauthorised loan of B’s money and B’s later acceptance of interest. This acceptance…

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A without authority of B lends money of B to C. Afterwards, B accepts interest on money from C. What does B's conduct lead to?

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Correct answer D

Section 197 permits express or implied ratification. Its illustration (c) describes an unauthorised loan of B’s money and B’s later acceptance of interest. This acceptance ratifies the loan, provided the knowledge requirement of section 198 is satisfied. Holding out concerns a different basis for ostensible authority.

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