Indian Contract 1872- Wagering Agreement | Legal Consequence Of Wagering Agreement
Indian Contract 1872- Wagering agreement | Legal Consequence of Wagering Agreement
Legal Consequence of Wagering Agreements.
No suit shall be brought for recovering anything alleged to be won on any wager, or entrusted to any person to abide the result of any game or other uncertain event, on which any wager if made (s.30).
– Agreements Void / Illegal : Wagering agreements have been expressly declared to be void in India. In the State of Maharashtra and Gujarat they are declared illegal (In such case the collateral transactions are also void).
– No Suit : No suit can be brought for recovering anything on any wager, or entrusted to any person to abide by the result of any event on which any wager is made.
Effects of wagering Agreements:
a. Promissory Note: A promissory note was executed for payment of indebtedness arising out of wagering transactions in shares. Held, that the promissory note was not enforceable.
b. Recovery Suit: Money deposited with a person (called stakeholder) to be paid to the party winning upon a wager cannot be recovered by the winner.
c. Principal and Agent: Principal cannot enforce in a wagering contract:
d. Collateral Transactions: As the wagering agreements are void, transactions collateral to them are not affected.