Agreement by Meaning of Wager
Section 30 of the Indian Contract Act, 1872 establishes that an agreement to wager will be considered a void agreement. The word ‘wager’ means a bet. Such agreements are based on the happening or non-happening of any event that is uncertain. Wagering agreements are similar to ordinary betting agreements. In a wager, each side would have a chance to either win or lose money, depending on the outcome of an uncertain event. The essentials of a wagering agreement are as below:
- A promise to pay money.
- A promise is conditional and based on the happening or non-happening of a certain event.
- The event on which a promise is based must be uncertain.
- Neither party to the contract can have any control over it.
- There must be a common intention to bet at the time of agreeing.
- Parties to the contract should have any other interest other than the stake in the bet.
However, the wagering agreement have certain exceptions, such as, chit funds, commercial transactions; i.e., trading on the stock market, athletic competitions and competitions involving skill sets, insurance contracts, etc.
For example, Sneha and Anu contract with each other that if team Happy Haryana beats Delightful Delhi, Sneha will pay ₹2000 to Anu, and if Delightful Delhi beats Happy Haryana then Anu will pay ₹1500 to Sneha. Such a contract is void.
Void Agreements : Meaning and Expressly Declared Void Agreements
Indian Contract Act, 1872 is a central law, and it validates the contracts or agreements between various parties. The act regulates and oversees all the business in case of any deal or an agreement. The Indian Contract Act, 1872 defines the term “Contract” under Section 2(h) as “An agreement enforceable by law”. Hence, a contract is anything that is an agreement and enforceable by the law of the land.
The Indian Contract Act, 1872 specifies certain essential elements which are required to be present in a contract, to form a valid contract. So, if those elements are not present, the contracts will not be legally binding on either of the parties and shall be declared either void or voidable. The parties to the contract should make sure that all the essential elements of a valid contract are present while engaging with any other party. In case a contract is void or voidable, restricted or no remedy will be available for the parties to the contract. Indian Contract Act has established certain agreements which are expressly declared as Void Agreements. These agreements are declared void by the law itself.
Geeky Takeaways:
- Indian Contract Act, 1872 is a central law, and it validates all the contracts or agreements between various parties.
- The Indian Contract Act, 1872 establishes several essential elements which are to be present in a contract. If such essential elements are absent, then such a contract or agreement is void.
- A void agreement is an agreement that is not enforceable by law.
- A void agreement confers no rights on parties to the contract or creates any obligation.
- The reasons why an agreement is declared void can be due to illegality, immorality, public policy, etc.
Table of Content
- What are Void Agreements?
- Expressly Declared Void Agreements
- 1. Agreement in Restraint of Marriage
- 2. Agreement in Restraint of Trade
- 3. Agreements in Restraint of Legal Proceedings
- 4. Agreement whose Meaning is Uncertain
- 5. Agreement by Meaning of Wager
- 6. Agreements Contingent on an Impossible Event
- 7. Agreement to do Impossible Acts
- Conclusion
- Frequently Asked Questions (FAQs)