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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?
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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.
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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.
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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?
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