CA Foundation · Business Laws · The Indian Contract Act, 1872
Dev promises to pay Rs 10,000 to Imran if Imran's horse wins a race next month. Imran's horse does win. Dev refuses to pay. Which statement is most accurate?
Imran cannot recover the money. The promise is a private bet where each party stands to win or lose depending on an uncertain event, so it is a wagering agreement. Such agreements are void, and no suit lies to recover a sum won on a wager.
- AImran can recover the amount because the event has occurred and consideration was present
- BImran can recover half the amount as a compromise
- CImran cannot recover because a wagering agreement is void and no suit lies to recover a sum won on a wagerCorrect
- DImran can recover only if the race was held at a government-approved venue
Explanation
An agreement where one party's gain depends on an uncertain event and the other's loss depends on it is a wager, and wagering agreements are void; no suit lies to recover a sum won on one. Option D refers to an exception for prizes in certain horse races, but that applies to prizes of Rs 500 or more for specified races, not to a private bet between two persons. Hence Imran cannot recover.
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