Uncertain agreement An agreement the meaning of which

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Uncertain agreement An agreement, the meaning of which is not certain or capable of

Uncertain agreement An agreement, the meaning of which is not certain or capable of being made certain, are void. The uncertainty may be in respect of quantity, quality, the price, and the title of the subject matter of the agreement. So where the term in an agreement is vague and may be, interpreted in many ways, then the agreement is void because of uncertainty.

Essentials of a Wager 1. Dependence on Uncertain Event One of the important essentials

Essentials of a Wager 1. Dependence on Uncertain Event One of the important essentials of a wagering agreement is that it must depend upon an uncertain event. Event may be past, present or future, but the parties must be unaware of its future or the time of its results or the time of its happening. 2. Mutual Chance of Gain or Loss Another element of wagering agreement is that each party to the agreement should stand to win or lose as per the result of the uncertain event. 3. No Other Interest in the Event Neither party should have any interest in happening or non-happening of the event other than the sum he will win or lose. If either party has some other interest other than the sum he will win or lose, it will not be a wager. 4. No Control Over the Event The parties to the contract should not have any control over the happening of the event one way or the other. If one party has the events in his hands, the transaction will not be a wager. 5. Promise to Pay Money or Money’s Worth The wagering agreement must contain a promise to pay money or money’s worth.

Distinction between Wagering Agreement and Contract of Insurance An insurance contract differs from a

Distinction between Wagering Agreement and Contract of Insurance An insurance contract differs from a wager in the following respects: 1. In a wagering agreement, there is no insurable interest, whereas contract of insurance has insurable interest 2. Wagering agreement is a void agreement, whereas contract of insurance is a valid one. 3. In a wagering agreement, neither party has any interest in the happening or nonhappening of an event. But in an insurance agreement, both the parties are interested in the subject-matter. 4. Wagering agreements are conditional contracts, whereas insurance agreements are contracts of indemnity except life insurance contracts which are contingent contracts. 5. The object of a wagering contract is to speculate for money’s worth, whereas an insurance contract is to protect an interest. 6. A wagering agreement is just a gamble, whereas a contract of insurance is based on scientific and actuarial calculation of risks.