Section 200 - Ratification of unauthorized act cannot injure third
person, Section 201 - Termination of agency : Indian Contract Act
What is the meaning of Ratification of unauthorized act cannot
injure third person? What is Termination of agency? Section 200 and
201 of Indian Contract Act
Section 200 of Indian Contract Act 1872 : "Ratification of
unauthorized act cannot injure third person"
200 . An act done by one person on behalf of another, without
such other person's authority, which, if done with authority,
would have the effect of subjecting a third person to damages,
or of terminating any right or interest of a third person,
cannot, by ratification, be made to have such effect.
(a) A, not being authorized thereto by B, demands, on behalf of
B, the delivery of a chattel, the property of B, from C, who is
in possession of it. This demand cannot be ratified by B, so as
to make C liable for damages for his refusal to deliver.
(b) A holds a lease from B, terminable on three months'
notice. C, an unauthorized person, gives notice of termination
to A. The notice cannot be ratified by B, so as to be binding on
Section 201 of Indian Contract Act 1872 : "Termination
201. An agency is terminated by the principal revoking his
authority; or by the agent renouncing the business of the
agency; or by the business of the agency being completed; or by
either the principal or agent dying or becoming of unsound mind;
or by the principal being adjudicated an insolvent under the
provisions of any Act for the time being in force for the relief
of insolvent debtors.