Difference / Distinction Between Wagering Contract and Contingent Contract
No
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Wagering Contract
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Contingent Contract
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1)
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Meaning :
The term ‘wager’ literally means ‘bet’.
Wagering Contract is one by which two persons, professing to hold opposite
views touching the issue of a future uncertain event mutually agreed
dependent upon the determination of the event that one shall win from the
other a sum of money, neither of the contracting parties having any other
interest”
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Meaning :
‘Contingent’
means “Something related to possible future and uncertain event”. Contingent
Contract is also called as conditional Contract.
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2)
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Definition :
“Wager” has not been
defined in the Indian Contract Act 1872.
Sir William Anson defines “wager” as a promise to give money or money’s
worth upon the determination or ascertainment of an uncertain event.
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Definition :
Section 31 of the Indian Contract
defines "contingent contract" as a contract to do or not to do
something, if some event, collateral to such contract, does or does not
happen.
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3)
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Example :
‘X’ bets with ‘Y’ Rs.
10,000/- that particular Political party come to power. ‘Z’ accepted the same
hoping that party would not come into power. It is an agreement by way of
wager. In this agreement X cannot sue Y for the amount since it is a wagering
agreement and is void.
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Example :
A contracts to pay B Rs. 10,000/- if B's
house is burnt. This is a contingent contract.
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4)
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In wagering, parties
may not have any interest in the event except the amount they may win or
lose.
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In Contingent
Contract, the promisor may have some interest in the event.
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5)
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According to Section
30 of the Indian Contract Act, 1872 wagering agreements are void. In England
it is not only void but illegal.
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Contingent Contract is
Valid and Enforceable by law
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6)
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In England collateral
transactions are void. On the other hand In India collateral transactions are
valid because wagering agreements is only void and not illegal.
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Collateral
transactions are valid.
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Thanx
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