A Short Note on WAGERing Agreement
A wager is an agreement between two parties by which one party promises to pay money (or) money’s worth and the happening of soma uncertain event, in consideration of the other parties promises to pay if the event does not happen.
The following are the essentials of a wagering agreement:-
1. There must be a promise to pay money (or) money’s worth.
2. The event must be uncertain.
3. There must be two parties.
4. Each party must stand to win (or) lose.
5. No control over the event.
6. No other interest in the event except winning (or) losing
The following transactions are not considered as wagering agreements.
a) Share market transactions,
b) Crossword competition,
c) Contract of insurance,
d) Horse racing,
e) Games of skill