Correct option is C
Under Section 30 of the Indian Contract Act, 1872, agreements by way of wager are declared void. This means that such agreements are not enforceable in a court of law. However, wager agreements are not unlawful in the sense that they are not criminal or punishable. Therefore, the agreement does not result in any legal consequences or penalties, but neither party can enforce it.
· A
wager is essentially a betting contract where two parties agree to pay money or valuable consideration based on the outcome of an uncertain event. For example, betting on a cricket match would be considered a wager, and the agreement would be void.
Void but Not Unlawful:
While
wagering agreements are void, they are not considered
illegal unless there is a specific law that makes betting or gambling illegal. In some regions, certain types of gambling may be regulated, but a simple wager between private individuals is generally not punishable.
Voidable vs. Void:
·
Void contracts have no legal force from the beginning, whereas
voidable contracts are valid until one party chooses to void it. In the case of a wager, it is
void ab initio (from the start).
Information Booster:
·
Exceptions: Some agreements that involve skill (such as betting on horse races in certain jurisdictions) may not fall under the definition of a wager and could be enforceable by law.
·
Illegal Wagering: While a simple wager is void, if it involves illegal activities (such as betting in states where gambling is prohibited), it may also be classified as
unlawful.
