Multiple choice

Which of the following is correct?

  1. A wagering agreement is void.

  2. A contingent contract is valid.

  3. A wagering agreement is void while a contingent contract is valid.

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Under the Indian Contract Act, 1872, wagering agreements (betting on uncertain events) are expressly void per Section 30. In contrast, contingent contracts - which depend on future uncertain events collaterally - are perfectly valid under Section 31. The key distinction is that contingent contracts have a legitimate interest element, unlike pure wagers.

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