Issue

 Whether Mr. Benjamin can ratify the contract made by Benjo?

Principle of law

 Section 135 of the Contract Act 1950: agent is a person to represent or dealing with a third
person.
 Section 136 of the Contract Act 1950: whoever have past 18 years old and above and who is
sound mind can be a principal.
 Section 137 of the Contract Act 1950: an agent is only represented for principal so anyone can
become an agent including a minor.
 Section 140 of Contract Act 1950: agent could be appointed by writing or oral even letter written
or words spoken may be effective in appointing an agent.
 Section 150 of Contract Act 1950 state that if the principal accepts the contract made in the
above situation is agency by ratification. Ratification renders the contract as binding on the
principal as if the agent has been properly authorized.

Conditions of ratification

1. Contract must be unauthorized.

2. The unauthorized contract must be one recognized by law.
3. Agent must at the time of the contract, expressly act as an agent for the principal. It is state in
Section 149 of Contract Act 1950 cases of Keighley Maxted and Co v Durant (1901).
Fact: Roberts who is an agent was authorized by the appellants to buy wheat at a certain price.
However, Roberts had exceeded his authority by buying the wheat at a higher price than
authorized, and buying it in his own name but intending it for Keighley. Keighley agreed to take
the wheat at that price but failed to take delivery.
Held: Keighley was not liable to Durant (third party) because Keighley had not ratified Robert’s
contract since Roberts at the time of the contract did not profess to act as agent.
4. Agent must have principal. Case: Kelner v Baxter (1866), it was held that a contract to buy a
hotel made by an agent on behalf of a company which was about to be formed cannot be
ratified because company did not exist at that time.
5. Principal must have contractual capacity at the time when contract is made.
6. Principal must at the time of ratification, have full knowledge of all material facts, unless it can
be shown that he intends to ratify the contract whatever the facts may be and assume
responsibility for them.
7. Principal must ratify the whole act or contract and partial ratification is not allowed. It is state in
Section 152 of Contract Act 1950, the principal must be acknowledged of all the material facts
related to the contract unless it’s shown that he intends to ratify without taking any facts into
consideration.
8. Ratification must be made within a reasonable time. It can be seen in case of Metropolitan
Asylum Board v Kingham and Sons (1890).
9. Ratification must not injured a third party.
Application

 By applying the principles of law to this situation, Mr. Benjamin cannot ratify the contract
because it does not fulfill the condition of appointment of agent by ratification. In this situation,
Mr. Benjamin appointed Benjo by his own to buy a mini van for him but Benjo do not have the
authority to give the amount cost that is wanted by Mr. Benjamin so the amount he give was
exceed the limit give by Mr. Benjamin.

Conclusion

 Benjo is an agent by ratification