Multiple choice

A agrees to pay B, Rs. 5,00,000/- if A is able to go to a foreign tour in the forthcoming week. It is

  1. a wagering contract

  2. a contingent contract

  3. both (1) and (2)

  4. not a contract at all
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

This is a contingent contract because A's obligation to pay depends on the uncertain future event of being able to go on a foreign tour. Unlike a wagering contract which involves pure chance without any legitimate interest, this contract appears to be based on A's actual plans and ability to travel. The event is uncertain but not a matter of pure chance or speculation.

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