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Transactions regarded as wager

  • An agreement, or a share market transaction, to settle the difference between the contract price and the market price of certain goods or shares on a specified day, is a wagering transaction
  • Commercial transactions, if the intention is not to deliver the goods but only to pay the difference in price.
  • A bet on a horse race carrying a price of less than ₹ 500 to the winner of horse race is a wagering agreement though horse race is permitted by some local laws.
  • A lottery is a game of chance. So, an agreement to buy a ticket for a lottery is a wagering agreement, even though it is authorised by some State Government Sec 294 A of Indian Penal Code 1860 makes selling of lottery punishable crime which may attract imprisonment or fine. The backing of lottery by State Government relives the person from being punished under Sec 294 A but it does not override the Sec 30 of Indian Contract Act 1872 and the lottery so conducted would remain wager and hence void.
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  • Games of chance such as betting or gambling are agreements which are by the way of wager.

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