Rakestraw v. Rodrigues

In Rakestraw v. Rodrigues (1972) 8 Cal.3d 67, a husband forged his wife's signature to a note on the wife's separate property to obtain a loan to provide capital for a supermarket he owned. The wife discovered the forgery within a few days, but did nothing to disclose it for some three years. In the meantime, she led others to believe that the loan was genuine, and took an active part in running the market. The Supreme Court held that the wife's post-discovery conduct constituted a ratification of the forgery: "Whether or not she was in a position to return the proceeds of the loan, she could have disavowed the transaction and relieved herself of potential liability by informing Acme and Security of the forgeries. At the time of discovery she had not ratified the transaction nor had she done anything to preclude her from asserting that the signatures were not hers." ( Id. at p. 75.)