Difference between contingent contract and wagering agreements PDF

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Difference between contingent contract and wagering agreements...

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 What are the difference between Contingent Contract and Wagering Contract?  Wagering Aggrement: Wager means bet or gamble. It is an agreement between two people where one person is win/gain and another person is loss/give. It is a void agreement and it can’t support any law. It is full of uncertainty. It is also called reciprocal and there have no consideration. Like an example: In the FIFA world Cup final match there are Two team Brazil and Argentina. Mr. X is Brazil and Mr. Y is Argentina. They get an agreement that if Brazil wins against Argentina then Mr. Y will pay BDT 10000 to Mr. X otherwise Mr. X will pay the same to Mr. Y. It is a wagering agreement. Because the event for which the agreement is done is uncertain. No party has control over the event. One party will won on the loss of another party. It contains reciprocal promises.

 Contingent Contract: In this contract two parties are get the beneficial. It is a certain contract and there have a condition/consideration. It is a valid agreement. In this contract when certain condition occurs then the promisor performs his obligation. Under section 31 of the Indian Contract Act, 1872, contingent contract are defined as follows: “If two or more parties enter into a contract to do or not do something, if an event which is collateral to the contract does or doesn’t happen, then it is a contingent contract.” Like an example:- In a Fire insurance contract, the insurer pays pays a certain amount if the insured property damage and losses caused by fire under certain conditions. The insurer is not called into action until the event of the damages happens. This is a contingent contract.

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 Difference between Contingent and Wagering Contract:Particulars Meaning Contract or not? Defined in Compensation

Types Who gets the beneficial? Examples

Contingent Contract

Wagering Contract

It means to do or not to do something. A void agreement is invalid from the beginning of a contract. So it can’t be a contract. Under section 31 of the Indian Contract Act, 1872 As it is a contract and defined by law. So absolutely there have compensation and also have a consideration. It is conditional with consideration. Both the parties (offeror and offeree).

It means bet or gamble.

Arafat is a private insurer and enters into a contract with Tuhin for fire insurance of Tuhins house. According to the terms, Arafat agrees to pay Tuhin an amount of Rs 6 lakh if his house is burnt against an annual premium of Rs 6000. This is a contingent contract.

It is a valid agreement. So it is Contract. It can’t be defined any law. As there is no contract, there is no compensation.

It is reciprocal without consideration. Only one Party. ( If he/she won the gamble) Mahmud agrees that if Bangladesh wins against India he will pay BDT 10000tk to Ashraf otherwise Ashraf will pay the same to Mahmud. It is a wagering agreement....