Difference between contingent contract and wagering agreements PDF

Preview

Summary

Difference between contingent contract and wagering agreements...

Description

Difference between contingent contract and wagering agreements: Contingent contract: 1) A contingent contract has been defined as a contract to do or not to do something, if some event collateral to such contract does not happen. As a contingent contract is wider in scope. 2) A contingent contract thus includes a wager. In other words a wagering agreement is a contingent contract. 3) In a contingent contract mutual promises are not necessary. 4) Example A promises B to pay Rs 1000 if a ship does not return. Here A is making a promise to pay but B is not making a similar promise to pay A. Thus there is no mutuality of promise in a contingent contract. 5) In a contingent contract there is a independent interest in this case. 6) In a contingent contract determination of an uncertain event is not the sole condition. 7) A contingent contract is valid. Wagering Agreement: 1) A wager is promise to pay money or money’s worth on the happening or non-happening of an uncertain event. 2) A contingent contract need not necessarily be a wager. Thus we can say that all wagering agreement are contingent but all contingent contract are not wager. 3) In case of a wagering agreement promise must be mutual. 4) Example. In wagering agreement A agree to pay B 20 rupees if it rains on Monday and if it does not B will pay 20 rupees to A. in the above example there is mutuality of agreement but this mutuality of promises is not necessary in case of a contingent contract. 5) In a wagering agreement there is no independent interest apart from the money to be won or lost

6) Example. A promises to pay Rs. 100 to B if it rains on Monday. It is a wagering agreement as A has not independent interest. 7) In a wagering agreement determination of an uncertain event is the main condition of the contract. 8) A wagering agreement is void/illegal...