Essentials of a wagering agreement
The essentials of a wagering agreement, are as follows-
1. Promise to pay money (or) money’s worth: The wagering agreement must be certain and there must be a promise to pay money (or) money’s worth between the parties.
2. Uncertain event: The promise made between the parties must be a conditional and uncertain event (i.e.., happening (or) non-happening). Generally, a wager relates to a future event, but it may also relate to a past event provided the parties are not aware of its result (or) the time of its happening.
3. Each party must stand to win (or) lose: Each party should stand to win (or) lose upon the determination of the uncertain event. An agreement is not a wager if either of the parties may win but cannot lose (or) may lose but cannot win.
4. No control over the event: The wagering agreement is a game of chance. Therefore, no party should have control over the happening (or) non happening of an event. If on the other hand one of the parties has control over the event, then the transaction lacks an essential ingredient of a wager.
5. No other interest in the event: The parties should have no other interest in the subject matter of the agreement except winning (or) losing of the amount of the wager.
6. There must be two parties.
7. The agreement must be void u/s 30.