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7/25/2019 Wagering Agreement & Contingent Contract-PDF

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Wagering Agreement & Contingent C


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WAGERING AGREEMENT

The word Wager means a BETA wager is an agreement by which money is payable by one peon the happening or non happening of a future, uncertain event

Example:

A & B agree with each other that if it rains tomorrow, A wiland if does no train tomorrow, B will pay A Rs.100.

Now this is a wagering agreement, as the event:

If it rains tomorrow is an uncertain event and there is mutualgain and loss for both for A and B.


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Characteristics

The characteristics of a wager agreement are a

The consideration for the promise under a wagering agre

pay or get mon

ey.

The money is payable on the

happening or the non-hap

event.

The agreement depends on a future and uncertain even

The essence of gaming and wagering is that one

party is

the other to lose.

In wagering agreement no party has control over the ev

Commercial transactions are valid, but to

pay price diffe

wagering agreement is void.


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Special Cases

Following are the transactions that are not wa

Shares. Agreements for sale and purchase of any cshare market transactions in which there is a genuinto do legitimate business are not wagering agreem

Games of Skill. For a game to be considered a gamunder Indian law, the position of law has been so fanot be a 100% skill based game, but predominantly

game. A game of mere skill is simply one in which thskill predominates the element of chance.

Contract of Insurance. Here the contract of insuranccompensate the loss faced by the insured on happevent which is uncertain. In case of life insurance, thpayable on happening of death of the insured is agdecided in advance.


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ExceptionsLotteries:

A lottery is a game of chance and hence is a wagering

It is not only void but also illegal because Section 294-A odeclares conducting of lottery a punishable offence.

EXCEPTION: If a lottery is authorized by the government, is that the persons conducting the lottery will not be guiltoffence, but it will remain a wager alright.

Crossword Puzzles: Crossword puzzles in which prizes depend upon corresponden

competitors solution with a previously prepared solution is a w

EXCEPTION: But if the prizes depend upon skill and intelligencevalid transaction. Hence prize competitions which are a gamewhich effort is made to select the best competitor are not wag

However amount prize in such competitions should not excee


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CONTIGNENT CONTRACT

A Contingent Contract is a contract to do or nsomething, if some event, collateral to such co

does or does not happen.

Example:

A promise to pay B a sum of money if a certain ship returns

The contract may be enforced if the ship returns within a yearvoid if the ship does not come within a year.


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Characteristics

The characteristics of a contingent contract afollows:

The performance of such contract depends on a coi.e., on the happening or non happening of the futu

The event must be collateral i.e., incidental to the c

The contingency is uncertain.


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DIFFERENCE

Subject Wagering Agreement Conting

Validity A wagering agreement isvoid.

A Contingv

Dependency It depends on happeningor non happening of an

event, but the contract isvoid.

It dependsor non ha

event, butv

Reciprocal Promise It consists of certainreciprocal promises.

It may nreciproc

Interest of the Parties The parties have nointerest in either getting or

paying money.

Either parthave an subject m

co


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THANKS !!!

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