Wagering Agreement
It is a kind of agreement where the first party promises to pay the second party on the occurrence of a certain event and in return, the second party agrees to pay to the first party on the non-happening of an event. As per the provisions, all wagering agreements fall under Section 30 and are considered void.
The following elements must be present in a wagering agreement:
- Both parties should have an equal opportunity to win or lose.
- The event on which the wager is done should be out of the control of both parties.
- The only interest of the parties should be to win or lose and no other motive should be present.
- The wager agreement fully depends on the happening of the futuristic event.
- Both parties must promise to pay money or the consideration as per the terms and conditions of the agreement.