Multiple choice

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

  1. Quasi contract

  2. Contingent contract

  3. Wagering agreement

  4. Voidable contract
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A wagering agreement involves a promise to pay money based on the outcome of an uncertain event, where neither party has any interest other than the bet itself. In this scenario, the payment depends entirely on whether it rains, making it a classic example of a wager. Such agreements are generally void under Section 30 of the Indian Contract Act.

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