Read the given paragraph carefully and answer given question:
Contracts are the important part of commercial law because all commercial transactions usually begin with an agreement or a contract.
Business transactions involving sale-purchase or exchange of services have become an integral part in day-to-day activities. In such instances, an agreement or a contract is necessary for determining the rights, obligations and liabilities of parties when they enter into any business transaction. The Indian Contract Act is the law governing contracts in India.
A ____ is contingent in nature.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → wager
A wager is contingent in nature because it is based on the outcome of an uncertain event. The parties involved in a wager agree to pay money or something of value based on the result of that event, which introduces an element of uncertainty.