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CS Executive · Jurisprudence, Interpretation and General Laws · Contract Law

Farhan and Gita agree that the one whose team wins a cricket match will receive Rs 5,000 from the other. Farhan wins and sues for the amount. What is the position under the Indian Contract Act, 1872?

Farhan cannot recover the money. Section 30 declares wagering agreements void and bars any suit to recover what is alleged to be won on a wager. The limited exception for horse-race prizes of five hundred rupees or more does not cover a private cricket bet.

  1. AHe can recover the amount as the agreement is a valid contract
  2. BHe can recover half the amount
  3. CHe cannot sue, as agreements by way of wager are void and no suit lies to recover a wager winCorrect
  4. DHe can sue only if the money was deposited with a third person

Explanation

Section 30 declares agreements by way of wager void and bars any suit for recovering anything alleged to be won on a wager. The horse-race prize exception of Rs 500 or more does not apply to a cricket bet between two persons. So no suit lies.

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