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A agrees to pay Rs. 1,000 to B if it rains. B promises to pay a like amount if it does not rain. The agreement is:
- a)Quasi Contract
- b)Contingent contract
- c)Wagering contract
- d)Voidable contract
Correct answer is option 'C'. Can you explain this answer?
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A agrees to pay Rs. 1,000 to B if it rains. B promises to pay a like a...
Wagering Contract
A wagering contract is a type of agreement where one party agrees to pay money or something of value to another party based on the outcome of a future and uncertain event. In this case, A and B have entered into a wagering contract where the event is rain.
Characteristics of Wagering Contract
- The contract is based on an event that is uncertain and future.
- The parties have no control over the event.
- The contract is based on the principle of chance.
- The contract involves a promise to pay money or something of value.
Validity of Wagering Contract
In India, wagering contracts are illegal and void under the Indian Contract Act, 1872. Such contracts are considered against public policy as they encourage gambling and can lead to moral degradation. Therefore, A and B's agreement is considered void.
Exceptions to the Rule
There are some exceptions to the rule. For example, a wagering contract may be valid if it is a skill-based game such as horse racing or a game of skill like chess. In such cases, the contract is considered valid as it is based on the skill of the players rather than chance.
Conclusion
In conclusion, A and B's agreement is a wagering contract as it is based on the uncertain event of rain. However, such contracts are considered void in India, unless they fall under the exceptions mentioned above.
A wagering contract is a type of agreement where one party agrees to pay money or something of value to another party based on the outcome of a future and uncertain event. In this case, A and B have entered into a wagering contract where the event is rain.
Characteristics of Wagering Contract
- The contract is based on an event that is uncertain and future.
- The parties have no control over the event.
- The contract is based on the principle of chance.
- The contract involves a promise to pay money or something of value.
Validity of Wagering Contract
In India, wagering contracts are illegal and void under the Indian Contract Act, 1872. Such contracts are considered against public policy as they encourage gambling and can lead to moral degradation. Therefore, A and B's agreement is considered void.
Exceptions to the Rule
There are some exceptions to the rule. For example, a wagering contract may be valid if it is a skill-based game such as horse racing or a game of skill like chess. In such cases, the contract is considered valid as it is based on the skill of the players rather than chance.
Conclusion
In conclusion, A and B's agreement is a wagering contract as it is based on the uncertain event of rain. However, such contracts are considered void in India, unless they fall under the exceptions mentioned above.
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A agrees to pay Rs. 1,000 to B if it rains. B promises to pay a like a...
It is a wareging contract because it may or may not rain
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A agrees to pay Rs. 1,000 to B if it rains. B promises to pay a like amount if it does not rain. The agreement is:a)Quasi Contractb)Contingent contractc)Wagering contractd)Voidable contractCorrect answer is option 'C'. Can you explain this answer?
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A agrees to pay Rs. 1,000 to B if it rains. B promises to pay a like amount if it does not rain. The agreement is:a)Quasi Contractb)Contingent contractc)Wagering contractd)Voidable contractCorrect 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. 1,000 to B if it rains. B promises to pay a like amount if it does not rain. The agreement is:a)Quasi Contractb)Contingent contractc)Wagering contractd)Voidable contractCorrect 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. 1,000 to B if it rains. B promises to pay a like amount if it does not rain. The agreement is:a)Quasi Contractb)Contingent contractc)Wagering contractd)Voidable contractCorrect answer is option 'C'. Can you explain this answer?.
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