1. Facts of the Case
X, the owner of a house, rented his property to Y under a rental agreement that could be terminated with three months’ notice.
Later, Z, without any authority or consent from X, issued a notice of termination to Y on behalf of X.
After this act, X came to know about Z’s action and decided to ratify the notice given by Z.
Subsequently, X filed a suit for ejectment (eviction) against Y, seeking possession of the house.
Y contended that Z had no authority to issue such a notice and that the termination was invalid.
The question arises — whether the ratification of the unauthorized act by X (the principal) makes the termination valid and whether X is entitled to a decree of ejectment.
2. Issues in the Case
- Whether the unauthorized notice given by Z (without the authority of X) can be ratified by X under Indian Contract Law?
- Whether the ratification by X makes the notice valid retrospectively, as if it had been authorized from the beginning?
- Whether X is legally entitled to obtain a decree of ejectment against Y based on such ratification?
3. Legal Principles Covered to Support Case Proceedings and Judgements
Relevant Provisions:
- Section 196, Indian Contract Act, 1872:
“Where acts are done by one person on behalf of another, but without his knowledge or authority, he may elect to ratify or to disown such acts. If he ratifies them, the same effects will follow as if they had been performed by his authority.” - Section 197, Indian Contract Act, 1872:
“Ratification may be expressed or may be implied in the conduct of the person on whose behalf the acts are done.” - Section 198:
“No valid ratification can be made by a person whose knowledge of the facts of the case is materially defective.” - Section 200:
“An act done by one person on behalf of another, without authority, which would have the effect of subjecting the other to a legal liability or terminating any right of a third person, cannot, by ratification, be made to do so to the prejudice of such third person.”
Application of Law:
- Z acted without X’s authority, so his action was unauthorized initially.
- Under Section 196, X can ratify the act if it is one that could have been lawfully done by him originally.
- Ratification, when made, has a retrospective effect — it relates back to the time when the act was done.
- However, under Section 200, ratification cannot prejudice the rights of a third person (in this case, Y) if such rights have already accrued before ratification.
Judicial Precedents:
- Bolton Partners v. Lambert (1889) 41 Ch D 295:
It was held that ratification relates back to the time of the original act, provided the act was lawful and could have been authorized initially. - Keighley, Maxsted & Co. v. Durant (1901) AC 240:
It was held that ratification is valid only if the act was done on behalf of the person ratifying.
4. Possible Judgement
In the present case, Z gave notice of termination without X’s authority, which was later ratified by X.
Since giving notice of termination is a lawful act that X himself could have performed, the ratification validates the notice retrospectively.
Thus, the notice given by Z, once ratified by X, becomes valid as if X himself had given it.
Therefore, X’s suit for ejectment against Y is maintainable, and he is entitled to a decree for possession, provided the ratification was done with full knowledge of the facts and before Y’s rights were materially affected.
Conclusion:
Yes, X is entitled to get a decree. The ratification by X relates back to the date when Z issued the notice, thereby making the termination valid and binding on Y.
About lawgnan:
Explore the concept of ratification of unauthorized acts under Section 196 of the Indian Contract Act, 1872, at Lawgnan.in. Learn how a principal can validate an agent’s unauthorized act through ratification, making it legally binding from the original date of the act. Lawgnan.in offers detailed case summaries like Bolton Partners v. Lambert and Keighley, Maxsted & Co. v. Durant, helping LLB students and law aspirants understand how ratification works in real-life legal disputes. Master important provisions such as Sections 196–200 with easy explanations and examples. Visit Lawgnan.in today to enhance your legal knowledge.
