Site navigation

What knowledge does section 198 of the Indian Contract Act, 1872, require for a person to validly ratify an unauthorised act done on their behalf?

Question and options

What knowledge does section 198 of the Indian Contract Act, 1872, require for a person to validly ratify an unauthorised act done on their behalf?

  1. Knowledge of the material facts of the case

  2. Knowledge of the possible financial benefit

  3. Knowledge of the legal power to ratify

  4. Knowledge of the possible legal liability

Answer and explanation

Correct answer: A - Knowledge of the material facts of the case

Section 198 requires knowledge that is free of material factual defects. Section 196 separately lets a person elect to ratify or disown an unauthorised act performed on their behalf.

Practice for these exams

Related question papers

Related exam syllabi

More solved explanations in Agency