Friday, October 12, 2007

Contract Act_Practical Problems_43

A took a bet of Rs. 500 with B that a certain horse would win a race. Under this agreement A had to deposit Rs. 100 with B. Since A had no money, he approached his friend C, who advanced the sum to him on the condition that A was to return Rs. 200, if A should win bet against B, but to return nothing, if A lost, A won his bet against B. Can C recover Rs. 200 from A?

No- C cannot recover Rs. 200 from A. Section 30 of the Indian Contract Act declares all wagering agreements as void ab inito. The contract between A and C is itself a wagering agreement as between A and B.

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