Question Scenario
State with reason whether the following statement is correct or incorrect: \nRatification of agency is valid even if knowledge of the principal is materially defective.
Estimated Writing Time: 9 mins Try in Practice Mode
Source: ICAI Module5 Marks
Back to Law List Suggested Answer
1. Provisions of the Act / Applicable Law
Incorrect: Section 198 of the Indian Contract Act, 1872 provides that for a valid ratification, the person who ratifies the already performed act must be without defect and have clear knowledge of the facts of the case. If the principal’s knowledge is materially defective, the ratification is not valid and hence no agency.
Exam Strategy Tip
When answering law questions in the CA Foundation exam, follow the "Provision -> Facts -> Conclusion" structure for maximum marks. Ensure to state the relevant sections where applicable to earn bonus marks from the evaluator.
Ready to Practice More Law Cases?
Test your knowledge under timed conditions in our dedicated Writing Practice Mode. Get a feel for the real exam pressure.
Enter Writing Practice