Where no separate statute prohibits the transaction, how does Section 30 of the Indian Contract Act treat an ordinary wagering agreement?
Question and options
Where no separate statute prohibits the transaction, how does Section 30 of the Indian Contract Act treat an ordinary wagering agreement?
A voidable agreement that either party may affirm
A void agreement that Section 30 does not itself prohibit
An enforceable agreement if made in writing
A criminally prohibited agreement by virtue of Section 30 alone
Answer and explanation
Section 30 of the Indian Contract Act, 1872 makes agreements by way of wager void and bars suits to recover what is won, but it does not make them illegal. The Supreme Court held in Gherulal Parakh v. Mahadeodas Maiya (1959) that a collateral agreement in aid of a wager is therefore not unlawful under Section 23. Only a separate law, such as a State gambling statute, can prohibit the activity itself.
Practice for these exams
-
All India Bar Examination (AIBE)
Subject revision
See pack details on LawMint.net -
UGC NET Law
Subject revision
See pack details on LawMint.net -
IIT Kharagpur LL.M. Entrance
Subject revision
See pack details on LawMint.net -
CLAT PG
Subject revision for a passage-based exam
-
CUET PG Law (LL.M.)
Subject revision
-
AILET PG
Subject revision
-
Supreme Court Law Clerk and Research Associate
Subject revision
-
Bihar Judicial Services
Subject revision
-
Uttarakhand Judicial Services
Subject revision
Related exam syllabi
More solved explanations in Lawful object & void agreements
- Assertion (A) : Collateral transaction to wagering agreements are valid. Reason (R) : Only wagering agreements are declared void under Section 30 of the Indian…
- An agreement between two persons to win or lose prize money on the result of a cricket match is:
- In Carlill v. Carbolic Smoke Ball Co. the definition of "Wagering Agreement" was given by:
- Under section 23 of the Indian Contract Act, 1872, which of these makes the object of an agreement unlawful?
- Which circumstance makes an agreement void under the Indian Contract Act, 1872 on the stated ground?