Site navigation

Apart from its exception for certain prizes for horse-racing, how does section 30 of the Indian Contract Act, 1872 treat an agreement by way of wager?

Question and options

Apart from its exception for certain prizes for horse-racing, how does section 30 of the Indian Contract Act, 1872 treat an agreement by way of wager?

  1. It is illegal, so agreements collateral to it are also void

  2. It is void, and no suit lies to recover what is said to be won on it

  3. It is voidable at the option of the party who loses the wager

  4. It is valid, but the winner may recover just the stake deposited

Answer and explanation

Correct answer: B - It is void, and no suit lies to recover what is said to be won on it

Section 30 of the Indian Contract Act, 1872 declares agreements by way of wager void and bars any suit to recover anything alleged to be won on a wager or entrusted to a person to abide its result. A wager is void but not illegal under the Act, so collateral transactions, such as a loan to pay a wager, are not for that reason void, except where a state law makes wagering unlawful.

Practice for these exams

Related exam syllabi

More solved explanations in Lawful object & void agreements