DIFFERENCE BETWEEN

CONTINGENT CONTRACTS
AND WAGERING CONTRACTS

By- MANISH PANWAR

 CONTINGENT CONTRACT

• A contingent contract is a contract to do

or not to do something, if some event,
collateral to such contract , does or does
not happen.
 ESSENTIAL ELEMENTS OF A
CONTINGENT CONTRACT:
• There are two persons.
• Depends on the happening or non-
happening of a certain event.
• Others may be interested in the contract.
• It is a valid contract.
 Example:
• A contracts to pay B Rs. 10,000 if
B’s house is burnt. This is a
contingent contract.
 WAGERING CONTRACTS
• A wagering contract is a contract in
which one person promises to another to
pay money by the happening of an
uncertain future event.
 ESSENTIAL ELEMENTS OF
WAGERING CONTRACT
• There are two persons.
• There must be an uncertain future event.
• Others are not interested in the contract.
• No control over the event by both the
parties.
 EXAMPLE:
• In a wrestling, A tells B that wrestler no.1
will win.
B challenges the statement of A.
They bet with each other over the result
of the wrestling. This is a wagering
contract.
 DIFFERENCE BETWEEN A CONTINGENT
CONTRACT AND WAGERING CONTRACT
* CONTINGENT CONTRACTS * WAGERING CONTRACTS
1. Contingent contract are 1. Wagering contract are
defined in Section 31 to 36. defined in Section 30.
2. It is a valid contract. 2. It is a void contract.
3. All contingent contract 3. All wagering contract
are not wagering contract. are contingent contract.
4. Others are interested 4. Others are not interested
in the contract. in the contract.
5. In a contingent contract, all 5. In a wagering contract, no
parties compulsory to perform party compulsory to
the contract. perform the contract.
THANK YOU