Section 200 - Ratification of unauthorized act cannot injure third person, Section 201 - Termination of agency : Indian Contract Act 1872

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 1872


 

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.

Illustrations
(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 A.

 

Section 201 of Indian Contract Act 1872 : "Termination of agency"

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.