Multiple choice

Assertion (A): Collateral transaction to wagering agreement is not enforceable by law. Reason (R): Wagering agreement is not illegal.

  1. Both Assertion (A) and Reason (R) are correct.

  2. Assertion (A) is correct, but Reason (R) is wrong.

  3. Both Assertion (A) and Reason (R) are wrong.

  4. Reason (R) is correct, but Assertion (A) is wrong.

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Wagering agreements are void, not illegal. Though a wagering agreement is void, transactions collateral to wagering agreements are valid and enforceable by law. For example, a broker in a wagering agreement can recover his brokerage.