Under Section 196, where a person acts on another's behalf without authority, the other person:
AMust always disown it
BCan ratify only with court approval
CIs automatically bound
DMay elect to ratify or to disown the act; ratification makes it as if authorised
Answer & Solution
Correct answer: D. May elect to ratify or to disown the act; ratification makes it as if authorised
Section 196 lets the principal ratify or disown an unauthorised act done on his behalf; ratification produces the same effect as prior authority.
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