Essential features of a wagering agreement

Essential features of a wager. The essentials of a wagering agreement may thus be summarised as follows:

(a)    There must bean promise to pay money or money’s
worth,_

(b)      The promise must be conditional on an event’s happening or not happening

(c)                    The event must be an uncertain one. If one of the parties has the event in his own hands, the transaction is not a wager.

(d)     Each party must stand to win or lose under the terms of agreement. An agreement is not a wager if one party- may only win and cannot lose, or if he may lose but cannot win, or if he can neither win nor lose.

(e)             No party should have a proprietary interest in the event. The stake must be the only interest which the parties have in the agreement.

An agreement by way of a wager , void. Section 30 lays down that “agreements by way of wager are void; and no suit shall be brought or recovering anything alleged to be won on any wager, or entrusted to any person to abide the result of any game or other uncertain event on which any wager if made.” Thus, where A and B enter into an agreement which provides that if England’s cricket team wins the test match, A will pay B Rs, 100, and if it loses B will pay Rs. 100 to A, nothing can be recovered by the winning party under the agreement, it being a wager. Similarly, where C and D enter into a wagering agreement and each deposits Rs 100 with Z. instructing him to, pay or give the total sum to the winner, no suit can ‘be brought by the winner for recovering the. bet amount from Z, the stake-holder. Further, if I.. had paid the sum to the winner, the loser cannot bring a suit. for recovering his Rs 100, either against the winner or against Z, the stake-holder, even if Z had paid after the loser’s definite instructions not to pay. Of course the loser can recover back, his deposit if he makes the demand before the stake-holder’ had paid it ovation the winner (Ratnakalli vs Vochalapu).

But even such a deposit cannot be recovered by a loser. in the States of Maharashtra and Gujarat. where such an agreement is void and illegal.

The Section makes an exception in favour of certain prizes for horse racing by providing further that “This Section shall not be deemed to render unlawful’” a subscription, or contribution, or agreement to subscribe or con-tribute, made or entered into for or toward any plate, prize or sum of money, of the value or amount of five hundred rupees or upwards, to be awarded to the winner or winners of any horse race.” Thus, a bet on a horse race carrying a prize of Rs 500 or more to the winners has been made valid under the exception. But with a view to protecting the poor persons from gambling, a bet on a’ horse race carrying a prize of less than Rs 500 remains a wager.

 Essentials of a Contract

 Methods of discharging a contract by mutual agreement.

 Distinguish between Contingent Contracts and Wagering Contracts

 What is void agreement?

 Void Agreements in Business Law

 Exceptions to Void Agreements

 What is Contract?

 What is Quasi Contract? What are the different types of Quasi Contracts.

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