DIFFERENCE BETWEEN CONTINGENT AND WAGERING CONTRACT BUSINESS LAW

• DIFFERENCE BETWEEN CONTINGENT AND WAGERING CONTRACT
  BUSINESS LAW
  
  
• MEANING OF CONTINGENT CONTRACT
• A CONTRACT MAY BE
• ABSOLUTE CONTRACT: WHICH THE PROMISOR BINDS HIMSELF TO THE PERFORMANCE IN ANY EVENT WITHOUT ANY CONDITIONS
• CONTINGENT MEANS WHICH IS DEPENDENT ON SOMETHING ELSE. CONTINGENT CONTRACT IS A CONTRACT TO DO OR NOT TO DO  SOMETHING OF SOME EVENT COLLATERAL TO SUCH CONTRACT DOES OR DOES NOT HAPPEN.
• FOR EXAMPLE GOODS ARE SENT ON APPROVAL,THE CONTRACT IS CONTINGENT CONTRACT DEPENDING UPON ON THE CONDITION OF BUYER TO ACCEPT OR REJECT
• WAGERING CONTRACT

1. IS ONE IN WHICH THERE ARE NECESSARY PARTIES BETWEEN WHICH THE CONTRACT HAS BEEN MADE  AND WHEREIN THE FIRST PARTY PROMISE TO PAY A CERTAIN SUM OF MONEY TO THE SECOND PARTY ON THE HAPPENING OF A PARTICULAR EVENT IN THE FUTURE AND SECOND PARTY AGRRES TO PAY TO THE FIRST PARTY ON NOT HAPPENING OF THAT PARTICULAR EVENT
2. A WAGER IN THE COMMON LANGUAGE MEANS BETTING OR GAMBLING
3. THE BASIC MEANS OF WAGERING IS BETTING
4. SECTION 30 OF THE INDIAN CONTRACT SPECIFICALLY TAKES ABOUT AGREEMENT BY WAY OF WAGER ARE VOID

• DIFFERENCE BETWEEN WAGER AND CONTINGENT CONTRACT
• WAGER

1. MUTUAL PROMISES
2. MUST CONTEMPLATE DETERMINATION OF UNCERTAIN EVENT AS SOLE CONDITION OF THE CONTRACT
3. NEITHER PARTY INTENDS TO PERFORM THE CONTRACT
4. VOID UNDER SECTION 30
5. PARTIES HAVE NO OTHER INTEREST IN THE SUBJECT MATTER OF THE AGREEMENT EXCEPT FOR THE STAKE
6. SENSE OF CONTINGENCY

• CONTINGENT CONTRACT

1. NOT NECESSARY TO HAVE MUTUAL PROMISES
2. THIS IS NOT SO IN CASE OF CONTINGENT CONTRACT AND THE FUTURE EVENT IS MERELY COLLATERAL OR INCIDENTAL TO THE CONTRACT
3. ARE GOOD UNLESS THEY ARE DECLARED TO BE VOID
4. PARTIES ARE INTERESTED IN THE OCCURRENCE OF THE EVENT OR NO OCCURRENCE OF THE EVENT
5. NO SENSE OF WAGERING