Question

Match the following.

A.	Contingent Contract	1.	Wagering Agreement
B.	Wagering Agreement	2.	Collateral Agreements are also void
C.	Illegal Agreement	3.	Insurance Contract
D.	Void Agreement	4.	One party must win & other must loose

• A. A - 3, B - 4, C - 2, D - 1
• B. A - 2, B - 4, C - 3, D - 1
• C. A - 1, B - 4, C - 2, D - 3
• D. A - 3, B - 2, C - 4, D - 1

Answer 1

Answer: (A)

A - 3, B - 4, C - 2, D - 1

(1) Contingent contract has been defined under Section 31 of the Indian Contract Act, 1872 as a contract to do or not to do something in case an event collateral to the contract happens or does not happen. In case of insurance contracts, the insurer seeks to provide for the loss of the insured in case the event stated happens within a particular time. This is why it is classified as a contingent contract.

(2) Wagering agreement has not been defined under the Indian Contract Act, 1872. But in the case of Carlill v Carbolic Smoke Ball Co. a wagering agreement has been defined as an agreement in which the parties to the contract hold opposing views on an event and agree that depending on the happening or non-happening of this future uncertain event one party shall win and the other party shall lose. The losing party must pay a sum of money to the winning party. It has to be of a nature that one party must win and the other has to lose.

(3) An illegal agreement is an agreement whose object or consideration is not lawful as per Section 23 of the Act. As per law, if an agreement is void, any agreement to collateral or side by side to it automatically becomes void.

(4) Void agreement-Section 30 of the Act states that wagering agreements are void ab initio.