A and B entered into an agreement whereby A should pay Rs.10.000/- to B if it rains on a specified day, otherwise B should pay Rs.10,000/- to A. It rains on that specified day. Can B recover the amount in a court of Law.?
B cannot recover the amount, as it is a wagering contract.
Wager means a bet. So a wagering contract is an agreement of bet. Wagering is defined as follows: Wagering contract is an agreement between two parties by which one person promises to pay a certain sum of money on the happening of some uncertain event and the other person promises to pay if the event does not happen.
As per Sec. 30 of the Indian Contract Act, an agreement by way of wager is void. And no suit shall be brought for recovering anything alleged to be won on any wager or entrusted to any person to abide by the result of any game or other uncertain event on which any wager is made.
In the given problem, the agreement between A and B that A shall pay Rs. 10,000/- to B if it rains on a specified day and B promising to pay Rs. 10,000/- if it does not rain on that day, is a wagering contract and hence void. So, B cannot recover the amount won by him in the wager.