Monday, October 08, 2007

Contract Act_Practical Problems_15

A enters into a contract with B for the sale of goods to be delivered at a future date. Is it a wagering agreement? Give reasons.

The contract in question is not a wagering agreement. It only involves future consideration and is a valid, enforceable, common business transaction. A transaction, to be wagering, must make the performance of the transaction dependent upon the happening or non-happening of an uncertain future event. The performance in the given case being not so dependent, transaction is not wagering.

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