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'A' enters into a bet with 'B'. 'A' promises that he will pay Rs. 50,000/- to 'B' if Srilanka defeats…

The promissory note does not make the wagering debt enforceable between A and B. Section 30 of the Contract Act prevents recovery of money won on a wager, and section 43 of…

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'A' enters into a bet with 'B'. 'A' promises that he will pay Rs. 50,000/- to 'B' if Srilanka defeats India in cricket world cup. 'B' in turn promises to pay Rs. 50,000/- to 'A' if India defeats Srilanka. India defeats Srilanka and 'B' instead of paying the amount to 'A' executes a promissory note in favour of 'A', promising that he will pay money On or before a specified date. No witness attests the promissory note. The promissory note is not registered; 'B' fails to pay within the stipulated time. On the basis of the above, which one of the following is the correct answer?

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Answer and explanation

Correct answer C

The promissory note does not make the wagering debt enforceable between A and B. Section 30 of the Contract Act prevents recovery of money won on a wager, and section 43 of the Negotiable Instruments Act denies an obligation between immediate parties where the instrument lacks consideration. The defect concerns the underlying wagering consideration, rather than a requirement of attestation or registration.

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