Law presentation

CONTINGENT CONTRACTS & WAGERING AGREEMENTS

CONTINGENT CONTRACTS.

INDEX

Meaning of contingent contract . Essentials of contingent contract. Rules to a contingent contract & examples.

DEFINATION
A contract to do or not do something if some event collateral to such contract does or does not happen.

ESSENTIALS

ACT must not be at a discretion of the promiser. The event must be collateral Contract is conditional It is valid contract

RULES TO CONTINGENT CONTRACT WITH EXAMPLES.

It depends on happening of future uncertain event. It depends on happening of future uncertain event within a fixed time. Example:-A contracts to pay B RS10000,if B`s house is burned during a year A Promises 2 pay B RS10000 if his(B`S) burnt during a year .

 It depends on non-happening of future uncertain event. It depends on non-happening of future uncertain event within a fixed time. EXAMPLE :-A promises to pay B RS1000 if a certain returns within a year. The contract is valid if the ship returns within the year & it becomes void if it is burnt/sinks within the year.

 A Contract depends on impossible event. A agrees to pay B RS 1000 if 2 straight lines can enclose a space. The agreement is void because 2 straight lines can never enclose a space.(e.g. of agreement upon impossible events.)

WAGERING AGREEMENT (SEC 30). INDEX.

Meaning Essentials with example Exceptions to wagering agreements contingent v/s wagering conclusion

DEFINATION .
According to section 30: wagering agreement is an agreement between two person under which money or money`s worth is payable by one person to another on happening or nonhappening of future uncertain event.

ESSENTIALS
Promise to pay money or money `s worth. Event should be uncertain. Mutual chances of gain/loss. Neither party has control over event. No other interest in event.

EXAMPLE
Bets contract between A & B i.e. if there will be rain tomorrow, if it rains A will pay B RS 10000 & if it does not rain B will pay A RS 10000. Agreements to settle difference between contract price & market price. Lottery [except government lottery] Crossword puzzles.

EXCEPTIONS TO WAGERING AGREEMENTS Price competition ; game of skill, puzzles (provided prize money does not exceed RS 1000) Price of value of above RS 500 to the winner in horse race. Contract of insurance.

CONTINGENT V/S WAGERING

contingent wagering

It may/may not consists of reciprocal promises.

Future event is collateral to main contract . It is legal &accepted all over India.

It consists of reciprocal promises.

Future event is essentials to the contract. It is void & illegal in states of Maharashtra & Gujarat .

It is a contract thus valid .

It is illegal & void(with exceptions to it)

CONCLUSION
Contingent contract is valid whereas wagering is void . In wagering parties may have other interest in the subject matter of the agreement except winning or losing of wagering amount. In contingent parties have no other interest as well.

PRESENTION BY

FINN...