Practice free →
HomeCA FoundationbusinesslawContingent and Quasi Contracts › Which statement correctly distinguishes a contin…

Which statement correctly distinguishes a contingent contract from a wagering agreement?

ABoth are void
BA wagering agreement is valid; a contingent contract is void
COnly contingent contracts contain reciprocal promises
DA contingent contract is valid and the parties have an interest in the subject matter, whereas a wagering agreement is void and the parties have no such interest
Answer & Solution
Correct answer: D. A contingent contract is valid and the parties have an interest in the subject matter, whereas a wagering agreement is void and the parties have no such interest
A contingent contract is valid and the parties have a real interest in the subject matter; a wagering agreement is void, the uncertain event is its core, and the parties have no interest beyond the wager.
Solve this in the app — CA Foundation practice & 24k+ MCQs →
Related questions