Assertion (A): A wager contract is conti

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Target Exam

CUET

Subject

Legal Studies

Chapter

Topics of Law

Question:

Assertion (A): A wager contract is contingent in nature.
Reasoning (R): A wager contract is valid in certain exceptional circumstances.

Options:

Both A and R are correct and R is the correct explanation of A.

Both A and R are correct and R is not the correct explanation of A.

A is correct but R is false.

A is false but R is correct.

Correct Answer:

A is correct but R is false.

Explanation:

Differences Between Wager and Contingent Contract

Wager	Contingent Contract
Wager is an invalid contract.	Contingent contracts are valid
In wager, there is always a reciprocal promise.	In contingent contract, there is no reciprocal promise.
Third parties do not have interest in Wager.	Third parties do not have interest in contingent contract
Wager is contingent in nature.	Contingent contracts are never wagering.