Business Environment and Law-Law Of Contract (Indian Contract Act 1872)
Agreements Collateral To Wagering-Law Of Contract
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However transactions collateral or incidental to a wagering agreement are not void as per Sec. 30. Lotteries: A lottery is a game of chance and is a wagering agreement. Cross-ward Puzzles: Cross-word puzzles are of two types:
Agreements
Collateral To Wagering
However transactions collateral or incidental to a wagering agreement are not void as per Sec. 30. Lotteries: A lottery is a game of chance and is a wagering agreement. Cross-ward Puzzles: Cross-word puzzles are of two types:
1. One in which any person solving the puzzle would be awarded, therefore it is a game of skill and not of chance and is not a wagering agreement.
2. The other type of cross-word puzzle is one in which the prize would be awarded to that competitor whose solution corresponds to the solution kept with the editor of the newspaper.
1. Contingent on the act of party to the contract: If the
performance of the promise is contingent upon the pleasure and will of the
promisor, it is not a contract at all.
2. Contingent upon the act of a third party: where the performance of a contract is conditional upon the act of a third party, it is a valid contract.
3. Contingent on the happening of an event: (Sec.32) “Contingent contracts to do or not to do anything, if an uncertain future event happens cannot be enforced by law unless and until that event has happened”.
4. Contracts contingent on the non-happening of an event: (Sec.33) “Contingent contracts to do or not to do anything, if an uncertain future event does not happen, can be enforced when the happening of that event becomes impossible, and not before”.
5. Contracts contingent on the happening or not happening of a specified event within fixed time (Sec.35). “Contingent contracts to do or not to do anything if a specified uncertain event happens within a fixed time, becomes void if at the expiration of the time fixed, such event has not happened or if, before the time fixed, such event becomes impossible”.
6. Contracts contingent on impossible event: (Sec. 36-)“Contingent agreement to do or not to do anything if an impossible event happens, are void, whether the impossibility is known or not to the parties to the agreement at the time when it is made.”
Agreements
However transactions collateral or incidental to a wagering agreement are not void as per Sec. 30. Lotteries: A lottery is a game of chance and is a wagering agreement. Cross-ward Puzzles: Cross-word puzzles are of two types:
1. One in which any person solving the puzzle would be awarded, therefore it is a game of skill and not of chance and is not a wagering agreement.
2. The other type of cross-word puzzle is one in which the prize would be awarded to that competitor whose solution corresponds to the solution kept with the editor of the newspaper.
Contingent Contracts
(Sec. 31) “A contingent contract is a contract to do
or not to do something, if some event, collateral to such contract does or does
not happen”. Thus it is a contract, the performance of which is dependent upon,
the happening or non-happening of an uncertain event, collateral to such
contract.
Example:
X contracts to pay Y Rs.30,000, in consideration of Y paying Rs. 100 monthly premium, if Y’s
factory is burnt. This is a contingent contract.
Example:
A agrees to pay B a sum of money if B marries C. Contracts of insurance and contracts of indemnity and guarantee
are popular instances of contingent contracts.
Rules Relating To Contingent Contracts
2. Contingent upon the act of a third party: where the performance of a contract is conditional upon the act of a third party, it is a valid contract.
3. Contingent on the happening of an event: (Sec.32) “Contingent contracts to do or not to do anything, if an uncertain future event happens cannot be enforced by law unless and until that event has happened”.
4. Contracts contingent on the non-happening of an event: (Sec.33) “Contingent contracts to do or not to do anything, if an uncertain future event does not happen, can be enforced when the happening of that event becomes impossible, and not before”.
5. Contracts contingent on the happening or not happening of a specified event within fixed time (Sec.35). “Contingent contracts to do or not to do anything if a specified uncertain event happens within a fixed time, becomes void if at the expiration of the time fixed, such event has not happened or if, before the time fixed, such event becomes impossible”.
6. Contracts contingent on impossible event: (Sec. 36-)“Contingent agreement to do or not to do anything if an impossible event happens, are void, whether the impossibility is known or not to the parties to the agreement at the time when it is made.”
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