CA Foundation Exam > CA Foundation Questions > A agrees to pay Rs. 500 to B if it rains, and...
Start Learning for Free
A agrees to pay Rs. 500 to B if it rains, and B promises to pay a like amount to A if it does not rain, this agreement is called
- a)Quasi Contract
- b)Contingent Contract.
- c)Wagering Agreement.
- d)Voidable Contract.
Correct answer is option 'C'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
A agrees to pay Rs. 500 to B if it rains, and B promises to pay a like...
Wagering Agreement:
A wagering agreement is a type of agreement where two parties make a mutual promise to each other based on the determination of an uncertain event. In a wagering agreement, both parties stand to gain or lose based on the outcome of an event. These agreements are generally considered to be void and unenforceable by law.
Explanation:
In the given scenario, A agrees to pay Rs. 500 to B if it rains, and B promises to pay a like amount to A if it does not rain. This agreement falls under the category of a wagering agreement.
Key Points:
- A wagering agreement involves a promise to pay a certain amount or deliver something of value based on the happening or non-happening of an uncertain event.
- In this case, the uncertain event is whether it rains or not.
- A has promised to pay Rs. 500 to B if it rains, and B has promised to pay a like amount to A if it does not rain.
- Both parties have made their promises based on the determination of this uncertain event.
- The outcome of the event is beyond the control of both parties.
- Wagering agreements are considered to be against public policy and are therefore void and unenforceable by law.
- The reason behind this is that wagering agreements encourage gambling and speculation, which are generally disapproved by the legal system.
- The primary purpose of a contract is to enforce the performance of a legal obligation, but wagering agreements do not involve a valid legal obligation.
- Therefore, the agreement between A and B is considered a wagering agreement and is void.
Conclusion:
The agreement between A and B, where A agrees to pay Rs. 500 to B if it rains and B promises to pay a like amount to A if it does not rain, is a wagering agreement. Such agreements are considered void and unenforceable by law.
A wagering agreement is a type of agreement where two parties make a mutual promise to each other based on the determination of an uncertain event. In a wagering agreement, both parties stand to gain or lose based on the outcome of an event. These agreements are generally considered to be void and unenforceable by law.
Explanation:
In the given scenario, A agrees to pay Rs. 500 to B if it rains, and B promises to pay a like amount to A if it does not rain. This agreement falls under the category of a wagering agreement.
Key Points:
- A wagering agreement involves a promise to pay a certain amount or deliver something of value based on the happening or non-happening of an uncertain event.
- In this case, the uncertain event is whether it rains or not.
- A has promised to pay Rs. 500 to B if it rains, and B has promised to pay a like amount to A if it does not rain.
- Both parties have made their promises based on the determination of this uncertain event.
- The outcome of the event is beyond the control of both parties.
- Wagering agreements are considered to be against public policy and are therefore void and unenforceable by law.
- The reason behind this is that wagering agreements encourage gambling and speculation, which are generally disapproved by the legal system.
- The primary purpose of a contract is to enforce the performance of a legal obligation, but wagering agreements do not involve a valid legal obligation.
- Therefore, the agreement between A and B is considered a wagering agreement and is void.
Conclusion:
The agreement between A and B, where A agrees to pay Rs. 500 to B if it rains and B promises to pay a like amount to A if it does not rain, is a wagering agreement. Such agreements are considered void and unenforceable by law.
Free Test
FREE
| Start Free Test |
Community Answer
A agrees to pay Rs. 500 to B if it rains, and B promises to pay a like...
Explanation:
The correct answer is C: Wagering Agreement.
A wagering agreement is a type of contract in which two parties make a bet on the outcome of an uncertain event. In this case, A agrees to pay Rs. 500 to B if it rains, and B promises to pay a like amount to A if it does not rain. Here are the reasons why this agreement is classified as a wagering agreement:
Definition of a wagering agreement:
A wagering agreement is an agreement between two parties where each party agrees to pay a certain sum of money on the happening or non-happening of an uncertain event.
Key points:
- In the given agreement, the payment of Rs. 500 is contingent upon the occurrence or non-occurrence of rain. It is dependent on an uncertain event.
- The agreement involves a mutual promise to pay a like amount to each other based on the outcome of the uncertain event.
- The primary intention of both parties is to win or gain something from the agreement, rather than entering into a regular business contract for a specific purpose.
- Wagering agreements are generally considered void and unenforceable in most jurisdictions, as they are based on chance rather than legitimate business transactions.
Therefore, based on the characteristics of the agreement described, it can be concluded that it is a wagering agreement.
The correct answer is C: Wagering Agreement.
A wagering agreement is a type of contract in which two parties make a bet on the outcome of an uncertain event. In this case, A agrees to pay Rs. 500 to B if it rains, and B promises to pay a like amount to A if it does not rain. Here are the reasons why this agreement is classified as a wagering agreement:
Definition of a wagering agreement:
A wagering agreement is an agreement between two parties where each party agrees to pay a certain sum of money on the happening or non-happening of an uncertain event.
Key points:
- In the given agreement, the payment of Rs. 500 is contingent upon the occurrence or non-occurrence of rain. It is dependent on an uncertain event.
- The agreement involves a mutual promise to pay a like amount to each other based on the outcome of the uncertain event.
- The primary intention of both parties is to win or gain something from the agreement, rather than entering into a regular business contract for a specific purpose.
- Wagering agreements are generally considered void and unenforceable in most jurisdictions, as they are based on chance rather than legitimate business transactions.
Therefore, based on the characteristics of the agreement described, it can be concluded that it is a wagering agreement.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
A agrees to pay Rs. 500 to B if it rains, and B promises to pay a like amount to A if it does not rain, this agreement is calleda)Quasi Contractb)Contingent Contract.c)Wagering Agreement.d)Voidable Contract.Correct answer is option 'C'. Can you explain this answer?
Question Description
A agrees to pay Rs. 500 to B if it rains, and B promises to pay a like amount to A if it does not rain, this agreement is calleda)Quasi Contractb)Contingent Contract.c)Wagering Agreement.d)Voidable Contract.Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A agrees to pay Rs. 500 to B if it rains, and B promises to pay a like amount to A if it does not rain, this agreement is calleda)Quasi Contractb)Contingent Contract.c)Wagering Agreement.d)Voidable Contract.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A agrees to pay Rs. 500 to B if it rains, and B promises to pay a like amount to A if it does not rain, this agreement is calleda)Quasi Contractb)Contingent Contract.c)Wagering Agreement.d)Voidable Contract.Correct answer is option 'C'. Can you explain this answer?.
A agrees to pay Rs. 500 to B if it rains, and B promises to pay a like amount to A if it does not rain, this agreement is calleda)Quasi Contractb)Contingent Contract.c)Wagering Agreement.d)Voidable Contract.Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A agrees to pay Rs. 500 to B if it rains, and B promises to pay a like amount to A if it does not rain, this agreement is calleda)Quasi Contractb)Contingent Contract.c)Wagering Agreement.d)Voidable Contract.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A agrees to pay Rs. 500 to B if it rains, and B promises to pay a like amount to A if it does not rain, this agreement is calleda)Quasi Contractb)Contingent Contract.c)Wagering Agreement.d)Voidable Contract.Correct answer is option 'C'. Can you explain this answer?.
Solutions for A agrees to pay Rs. 500 to B if it rains, and B promises to pay a like amount to A if it does not rain, this agreement is calleda)Quasi Contractb)Contingent Contract.c)Wagering Agreement.d)Voidable Contract.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of A agrees to pay Rs. 500 to B if it rains, and B promises to pay a like amount to A if it does not rain, this agreement is calleda)Quasi Contractb)Contingent Contract.c)Wagering Agreement.d)Voidable Contract.Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A agrees to pay Rs. 500 to B if it rains, and B promises to pay a like amount to A if it does not rain, this agreement is calleda)Quasi Contractb)Contingent Contract.c)Wagering Agreement.d)Voidable Contract.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for A agrees to pay Rs. 500 to B if it rains, and B promises to pay a like amount to A if it does not rain, this agreement is calleda)Quasi Contractb)Contingent Contract.c)Wagering Agreement.d)Voidable Contract.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of A agrees to pay Rs. 500 to B if it rains, and B promises to pay a like amount to A if it does not rain, this agreement is calleda)Quasi Contractb)Contingent Contract.c)Wagering Agreement.d)Voidable Contract.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A agrees to pay Rs. 500 to B if it rains, and B promises to pay a like amount to A if it does not rain, this agreement is calleda)Quasi Contractb)Contingent Contract.c)Wagering Agreement.d)Voidable Contract.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup