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A agrees to sell to B a horse for Rs. 25,000 if he wins race and for Rs. 15,000 if he does not. The horse wins the race. The agreement is:
- a)Valid and Enforceable
- b)Void and enforceable
- c)Void and wagering
- d)Voidable and wagering
Correct answer is 'C'. Can you explain this answer?
Most Upvoted Answer
A agrees to sell to B a horse for Rs. 25,000 if he wins race and for R...
According to Section 2(g), "Agreement not enforceable by law is said to be void." Such agreement are void as initio which means that they are enforceable right from the time they are made. Similarly according to Section 30 of the Indian Contract Act, 1872, a wagering agreement is an agreement between two persons under which money or money's worth is payable, by one person to another on the happening or non- happening of a future uncertain event is called a wagering agreement.
Hence, in this case where A agrees to sell to B a horse for Rs. 25,000 if it wins a race and for Rs.15,000 if does not and the horse wins the race, the agreement between A and B is void and wagering as the agreement between them is unenforceable and wagering because money is payable on the horse winning the race.
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A agrees to sell to B a horse for Rs. 25,000 if he wins race and for R...
Explanation:
The given agreement is a classic example of a wagering agreement. Let's break down the elements of the agreement and understand why it is void and wagering:
• Agreement to Sell: There is an agreement between A and B for the sale of a horse.
• Contingency: The sale is contingent upon whether the horse wins the race or not.
• Uncertainty of Event: The event (winning the race) is uncertain, and its outcome is not in the control of either party.
• Mutual Chance of Loss or Gain: Both parties stand to either gain or lose depending on the outcome of the event.
All of these elements make the agreement a wagering agreement, which is defined as an agreement where two parties agree to pay or receive money or goods based on the outcome of an uncertain event. Such agreements are void and unenforceable under the Indian Contract Act, 1872.
Therefore, the correct answer is option (C) - Void and Wagering.
The given agreement is a classic example of a wagering agreement. Let's break down the elements of the agreement and understand why it is void and wagering:
• Agreement to Sell: There is an agreement between A and B for the sale of a horse.
• Contingency: The sale is contingent upon whether the horse wins the race or not.
• Uncertainty of Event: The event (winning the race) is uncertain, and its outcome is not in the control of either party.
• Mutual Chance of Loss or Gain: Both parties stand to either gain or lose depending on the outcome of the event.
All of these elements make the agreement a wagering agreement, which is defined as an agreement where two parties agree to pay or receive money or goods based on the outcome of an uncertain event. Such agreements are void and unenforceable under the Indian Contract Act, 1872.
Therefore, the correct answer is option (C) - Void and Wagering.
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A agrees to sell to B a horse for Rs. 25,000 if he wins race and for Rs. 15,000 if he does not. The horse wins the race. The agreement is:a)Valid and Enforceableb)Void and enforceablec)Void and wageringd)Voidable and wageringCorrect answer is 'C'. Can you explain this answer?
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A agrees to sell to B a horse for Rs. 25,000 if he wins race and for Rs. 15,000 if he does not. The horse wins the race. The agreement is:a)Valid and Enforceableb)Void and enforceablec)Void and wageringd)Voidable and wageringCorrect answer is 'C'. Can you explain this answer? for CA Foundation 2025 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 sell to B a horse for Rs. 25,000 if he wins race and for Rs. 15,000 if he does not. The horse wins the race. The agreement is:a)Valid and Enforceableb)Void and enforceablec)Void and wageringd)Voidable and wageringCorrect answer is 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A agrees to sell to B a horse for Rs. 25,000 if he wins race and for Rs. 15,000 if he does not. The horse wins the race. The agreement is:a)Valid and Enforceableb)Void and enforceablec)Void and wageringd)Voidable and wageringCorrect answer is 'C'. Can you explain this answer?.
A agrees to sell to B a horse for Rs. 25,000 if he wins race and for Rs. 15,000 if he does not. The horse wins the race. The agreement is:a)Valid and Enforceableb)Void and enforceablec)Void and wageringd)Voidable and wageringCorrect answer is 'C'. Can you explain this answer? for CA Foundation 2025 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 sell to B a horse for Rs. 25,000 if he wins race and for Rs. 15,000 if he does not. The horse wins the race. The agreement is:a)Valid and Enforceableb)Void and enforceablec)Void and wageringd)Voidable and wageringCorrect answer is 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A agrees to sell to B a horse for Rs. 25,000 if he wins race and for Rs. 15,000 if he does not. The horse wins the race. The agreement is:a)Valid and Enforceableb)Void and enforceablec)Void and wageringd)Voidable and wageringCorrect answer is 'C'. Can you explain this answer?.
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