Wagering agreement
Whenever the agreement is a wagering agreement the worth of the goods or any other instrument being exchanged is not mentioned and the worth of that particular thing is ascertained in the future. the future is uncertain the worth of the goods also is uncertain. Let say we talk about the share market and some shares are just interpreted into the papers but then the payment of that particular share is to be done in the mere future so over here the share price may increase or it may decrease as well. so over here the essence is that one person may win and one person has to lose in the future event. For example: let say there is “ A “ and “B” over here A promises to buy a material that is useful in the types of machinery and he contracts with B for a future date but then on the date of the contract fulfilment the price of the material increases over here A is bound to pay the cost that is pre-relevant in that particular day. The above-mentioned concepts are just the concept of wagering agreement but the actual question is whether these kinds of contracts can be entered in the real phenomenon whether these agreements are valid under the law?
Validity of wagering agreements
the answer to the above-listed question is that the wagering agreements are not enforceable in India and is void as stated under sec-30 of Indian contract act which states that no agreement shall be entered between the parties that is for the future event and whose cost is not fixed and uncertain. The wagering agreements in India are void and not illegal in all other cases except in the case of lottery which is a crime according to a provision of Indian penal code, it is not illegal but simply void but only in cases of lotteries, this is valid. certain provisions were inserted for the lottery system for a reason that the lottery organizers shall not be penalized but otherwise, it is invalid .in another judgment of the supreme court, the court held that the lottery system shall be legalized and the purchaser of the lottery ticket shall have few rights attached to the ticket: the first one being that the participant shall have the right to be present in the draw session, the second one being that the participant shall have the right over the prize amount if wins the draw.
transactions held “not wagers “
