A agrees to pay Rs. 500 to B if it rains and B promises to pay like amount if it does not rain, this contract/agreement is:a)Quasi contractb)Contingent contractc)Wagering agreementd)Voidable contractCorrect answer is option 'C'. Can you explain this answer?

Question

Answer

Wagering Agreement

A wagering agreement is an agreement in which two parties bet on an uncertain event. The parties agree to pay a certain amount of money to each other depending on the outcome of the event. If the event occurs, one party will pay the other party the agreed amount. If the event does not occur, the other party will pay the agreed amount.

Explanation

In this given scenario, A agrees to pay Rs. 500 to B if it rains, and B promises to pay the same amount if it does not rain. This is a clear example of a wagering agreement. The agreement is based on an uncertain event, i.e., whether it will rain or not. The parties have agreed to pay a certain amount of money to each other based on the outcome of this uncertain event.

Wagering agreements are generally unenforceable in the eyes of the law. This is because they promote gambling, which is considered illegal in many countries. The reason for this is that wagering agreements do not involve any exchange of goods or services. They are based purely on chance, and the parties involved do not have any control over the outcome of the event.

Conclusion

In conclusion, the contract/agreement between A and B is a wagering agreement. Such agreements are generally considered unenforceable by law. Therefore, it is advisable to avoid entering into such agreements.

Answer

Reasons why other options are not its answer
a)quasi contracts are those,which look like a contract even though they are not made by in the manner in which contracts are made
b)contingent are those which are depend on happening or not happening of an event,but here intrest of both the parties involved for example a agrees to sale his goods to B if his ship will safely reach at port
d)voidable are those which are acceptable on the permission of one party which is aggrieved part but not at the option of other
now correct option is c.
as wagering agrements are those in which interest of only one party involved and they are also depend on happening or non happening of an event.here if one of them will win other must have to suffer a loss.

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Needed a Video for consideration suit by a third party to contracrt? Related: Contingent & Quasi Contract - The Indian Contract Act, 1872, Mercantile Law?

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