Wagering & Contingent contracts.

Do you understand what is a wagering agreement and a contingent agreement? Wagering Contracts and Contingent Contracts? If NO, then a must view slideshow for you.

1. Difference between Wagering Contracts &
Contingent Contracts.
Legal status of wagering contracts for rights &
obligations between the parties.
A presentation on
Presented by: Jay Shah, FMS-B, The M.S.University of Baroda.

2. Wager Contract (Sec 30)
A wager contract is a contract in which one person
promises to another to pay money or money’s worth
by the happening of an uncertain future event in
consideration for other person’s promise to pay if the
event does not happen.
Jay Shah, FMS-B.

3. Essential Elements of Wagering
•There are two persons.
•There must be an uncertain future event.
•No control over the event by both the parties.
•There must be a reciprocal promise.
•Others are not interested in the contract.
Jay Shah, FMS-B.

4. Example:
InwageringagreementAagreestopayB20rupees
ifitrainsonMondayandifitdoesnotrainBwill
pay20rupeestoA.Intheaboveexamplethereis
mutualityofagreementbutthismutualityof
promisesisnotnecessaryincaseofacontingent
contract.
Jay Shah, FMS-B.

5. Inawrestlingbout,A
tellsBthatwrestler
no.1willwin.
Bchallengesthe
statementofA.
Theybetwitheach
otherovertheresultof
thebout.Thisisa
wageringagreement.
Example:
Jay Shah, FMS-B.

6. Contingent Contract(sec 31)
A contingent contract is a contract to do or not to do
something, if some event, collateral to such contract,
does or does not happen. It is also called a
conditional contract.
Jay Shah, FMS-B.

7. Essential Elements of a
Contingent Contract:
•Therearetwopersons.
•Theremustbeanuncertainfutureevent.
•Somecontrolovertheeventbutnotabsolute
control.
•Thereisnoreciprocalpromisebetweenthepersons.
•Othersmaybeinterestedinthecontract.
•Itisavalidcontract.
Jay Shah, FMS-B.

8. Example:
•AcontractstopayB
Rs.10,000ifB’shouseis
burnt.Thisisacontingent
contract.(Contractof
Insurance)
Jay Shah, FMS-B.

9. ApromisesBtopayRs.1,000ifaship
doesnotreturn.
HereAismakingapromisetopaybut
Bisnotmakingasimilarpromiseto
payA.
Thusthereisnomutualityof
promisesinacontingentcontract.
Example:
Jay Shah, FMS-B.

10. Rules Regarding Contingent Contracts
•Contingentcontractsdependentonhappeningofanuncertain
futureeventcannotbeenforceduntiltheeventhashappened.(
Sec32)
•Whereacontingentcontractsistobeperformedifaparticular
eventdoesnothappen,itsperformancecanbeenforcedwhen
thehappeningofthateventbecomesimpossible.(Sec33)
•Ifacontractiscontingentuponhowapersonwillactatan
unspecifiedtime,theeventshallbeconsideredtobecome
impossiblewhensuchpersondoesanythingwhichrendersit
impossiblethatheshouldsoactwithinanydefinitetime,or
otherwisethanunderfurthercontingencies.(Sec34)
Jay Shah, FMS-B.

11. •Contingentcontractstodoornottodoanything,ifa
specifieduncertaineventdoesnothappenwithinafixed
time,maybeenforcediftheeventdoesnothappenorits
happeningbecomesimpossiblebeforetheexpiryofthat
time.(Sec35)
•Contingentagreementstodoornottodoanything,ifan
impossibleeventhappens,arevoid,whetherornotthe
factisknowntotheparties.(Sec36)
Jay Shah, FMS-B.

12. Differences Between a Wagering
Agreement and a Contingent Agreement:
•Wager agreement
•There is a reciprocal promise.
•It is a void contract.
•Others are not interested in the
contract.
•It is contingent in nature.
•Here, the parties have no
interest in the subject matter.
•It is a game, losing and gaining
alone matters
•Contingent agreement
•Thereisnoreciprocalpromise.
•Itisavalidcontract.
•Othersareinterestedinthe
contract.
•Itmaynotbewageringin
nature.
•Here,thepartiesmayhave
interestinthesubjectmatter.
•Itisnotagame,onlylosingand
gainingdoesn’tmatters.
Jay Shah, FMS-B.

13. Thank you!
Jay Shah, FMS-B.
[email protected]