59. Ratification of contract.

(2)     Acts Capable of Ratification

59.     Ratification of contract.

A contract may be ratified by the principal even though the circumstances have altered, as by a loss occurring under an unauthorised marine insurance policy1, or even when the third party has given notice of repudiation2, provided that it is ratified within a reasonable time3. It is immaterial that the contract was made by the agent in fraud of the principal4. Where, however, the agent and third party are able to rescind their transaction so that there remains nothing to ratify,