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    Gursimrat Kaur
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    This document discusses wagering agreements under the Indian Contract Act of 1872. It provides that a wager is a bet where two parties agree that the first will pay a fixed sum to the second if an uncertain future event occurs, and the second will pay the first if it does not occur. Both parties have a chance of winning or losing without using skill. An example of a wagering agreement is one where Piyush and Shamit bet on the outcome of a cricket match between India and Australia. For an agreement to be considered a wager, the outcome must be dependent on an uncertain event, both parties must have a chance of gain or loss, and neither party can control the event. Exceptions include insurance contracts

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    This document discusses wagering agreements under the Indian Contract Act of 1872. It provides that a wager is a bet where two parties agree that the first will pay a fixed sum to the second if an uncertain future event occurs, and the second will pay the first if it does not occur. Both parties have a chance of winning or losing without using skill. An example of a wagering agreement is one where Piyush and Shamit bet on the outcome of a cricket match between India and Australia. For an agreement to be considered a wager, the outcome must be dependent on an uncertain event, both parties must have a chance of gain or loss, and neither party can control the event. Exceptions include insurance contracts

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    6 views6 pages

    Wagering Agreement

    Uploaded by

    Gursimrat Kaur
    This document discusses wagering agreements under the Indian Contract Act of 1872. It provides that a wager is a bet where two parties agree that the first will pay a fixed sum to the second if an uncertain future event occurs, and the second will pay the first if it does not occur. Both parties have a chance of winning or losing without using skill. An example of a wagering agreement is one where Piyush and Shamit bet on the outcome of a cricket match between India and Australia. For an agreement to be considered a wager, the outcome must be dependent on an uncertain event, both parties must have a chance of gain or loss, and neither party can control the event. Exceptions include insurance contracts

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 6

    WAGERING AGREEMENT

    INDIAN CONTRACT ACT, 1872


    INTRODUCTION

    Wager means a bet which is given under section-30 of ICA 1872.


    when two parties enter into an agreement upon the condition that
    the first party will pay a fixed sum of money to the second party on
    the happening of an uncertain future event and second party will
    pay the first party when the event does not happen, it is called a
    wagering agreement. There is mutual chances of winning and
    losing without using any of their skills.

    Example - An agreement made among Piyush and Shamit which


    provides that if Indian Cricket Team wins from Australia Cricket
    Team, Piyush will pay Rs. 300 and if Australia Cricket Team wins
    from Indian Cricket Team, Sumit will pay Rs. 450. This agreement
    is agreement by way of wager.
    ESSENTIALS

    It must be dependent on an uncertain event.

    There is a mutual chance of gain or loss.

    Neither of the parties must have control over the event.

    Must have no other interest other than the stake.


    EXCEPTIONS

    Horse racing is based on skills, it is not consider as


    wager because if the people participate by
    contributing with an amount of RS 500 or more
    towards the reward money which is to be given to the
    winner of the horse race.

    K. R. Lakshmanan v. State of Tamil Nadu(1996), the


    Supreme Court had held that horse racing was a game
    of skill and playing for stakes in a game of skill was
    not illegal.
    EXCEPTIONS

    • Insurance Contracts - An insurance contract is a • Competitions involving skill - Skill competitions


    contract of indemnity which is used to safeguard are not said to be wagers since they the winning of
    the interest of one party against damage and also such events requires a substantial amount of skill
    has an insurable interest. The object of a and are not dependent on the probability of an
    wagering contract is to speculate for money or uncertain event. For example crossword puzzles,
    money’s worth, whereas the object of an sports competitions etc. If the competition is based
    insurance contract is to protect an interest. on chance and not skill for example a lottery it
    Case - Northern India General Insurance Co. would amount to a wager and therefore be void.
    Ltd. Bombay Vs. Kanwarjit Singh Sobti. Case - Moore v. Elphick(1945)
    • Rummy is also a skill based game, except if the
    owner of club plays it for earning profit. Case -
    Andhra Pradesh v. Satyanarayana, AIR 1968

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