What is the Wagering Contract? An agreement between two parties to the effect that if given uncertain event in determined in one way.
One of them will pay a certain sum of money to the other’s and if it is determined in another way, the later shall pay to the former. The different law experts have defined the wagering contract such as
Sir William Anson: “A wagering contract is an agreement to give money or money’s worth upon the determination or ascertainment of an uncertain event.”
Cotton L. J: Collon was a Judge and he described the wager in a care, Thacker Vs Hardy, as follows: “The essence of gaming or wagering is that one party is to win and the other to lose upon a future event which at the time of the contract is of an uncertain nature that is to say, if he even turns out one way A will lose, but if it turns out the other way he will win.”
From the above-mentioned definitions we find that a Wagering contract is an agreement between two persons or parties that if an uncertain event has happened in one way.
See Also: What is Contract of Sale
one of them will pay a fixed amount to another party and in the contrary event, the second party will pay to the first party. In other words, it is bet in between two parties and gain of one is the loss of other.
Wagering Contract Example
Illustration: A race is held in between two horses and one is white and other is and Black. Two parties enter into the contract about this race that if white horse wins the race, A will pay $1000 to B and vice versa. This will be a wagering contract.
Essentials Of a Wagering Contract
The following are the essential conditions of a wagering contract.
- There must be a promise to pay money or money’s worth only.
- The contract must be conditional on the happening or not happening of the event.
- The event must be uncertain. The parties are not able to know beforehand what will be the result.
- There must be mutual charms of gain or loss.
- The gain of one party must be the loss of other parties.
An Agreement by way of Wager is void
According to section 30 of the Contract Act, an agreement by way wager is void and no suit shall be brought for recovering anything to be one on any wager or entrusted to any person to abide the result of any game or another uncertain event on which any wager is made.
So, any such agreement or bet is void. Therefore, any payment or receipt of the result of a cricket or football match is void.
Example of Void
Illustration: It is supposed that a cricket match is held between Pakistani and Indian teams. It is further assumed that A bets with B that If Pakistani team wins the match, he will Receive $4000 and If Indian team wins, he will pay to B $5000. B agrees on it. It will be wagering contract and is void under the Pakistani law.
