Section 196 of ICA : Section 196: Right Of Person As To Acts Done For Him Without His Authority

Explanation using Example

Imagine John is away on a business trip, and his friend Alex, without John's knowledge, sells John's old car to Carol, thinking he is doing John a favor. Alex is not authorized to sell John's car. Upon returning, John learns about the sale. Under Section 196 of The Indian Contract Act, 1872, John has the option to either ratify (approve) or disown (reject) the sale. If John decides to ratify the sale, it is as if he had authorized the sale himself, and the transaction is valid. If John disowns it, the sale is not valid, as Alex did not have the authority to sell the car in the first place.