Contract of agency --- essential of ratificaction

In this example, first P the principle, does not know that the agent is hiding facts that the goods he is supplying are his own. So the principal ratifies the transaction. Later principle finds out goods were belonging to agent himself and he pretended to sell it to be as someone else's goods. This is a material fact that principal did not know before when he ratified the transaction. Section says that such ratification workout knowledge of material facts, is not binding on the principle. So here P can back out from the ratification and decline to accept the goods. He had that option. But if we does not want to decline, he can accept the goods also... it is up to him.

CA YOGITA HARJANI

Faculty

29-Jun-21 12:37

What's your doubt in this?

Sahibdeep Singh

CA Inter

★ 14K+

28-Jun-21 09:58

Agent was purchased without authority principal was accepted higher value purchase principal knows that purchase not for principal for agent himself . is principal is liable or not ?? And explain last 3 lines of example 12

Thread Starter

Aswini Gorige

CA Inter

★ 7K+

28-Jun-21 19:49

Ok mam tq I understand u made easy to understanding tq very much

Thread Starter

Aswini Gorige

CA Inter

★ 7K+

30-Jun-21 16:54