Question:
An agreement entered into by way of a wager/bet is unenforceable in law.
Fact Situation: Thomas is very good at predicting outcomes of cricket matches. Raja and Hoja give him \rupee thousand each to enable him to bet with others about the outcome of a cricket match. Thomas wins \rupee three lakh after betting \rupee three thousand.
Which of the following statements is the most appropriate in relation to the legal principle stated above?
An agreement entered into by way of a wager/bet is unenforceable in law.
Fact Situation: Thomas is very good at predicting outcomes of cricket matches. Raja and Hoja give him \rupee thousand each to enable him to bet with others about the outcome of a cricket match. Thomas wins \rupee three lakh after betting \rupee three thousand.
Which of the following statements is the most appropriate in relation to the legal principle stated above?
Fact Situation: Thomas is very good at predicting outcomes of cricket matches. Raja and Hoja give him \rupee thousand each to enable him to bet with others about the outcome of a cricket match. Thomas wins \rupee three lakh after betting \rupee three thousand.
Which of the following statements is the most appropriate in relation to the legal principle stated above?
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Wagering and betting agreements are void and unenforceable in India — no party can legally claim winnings or recover losses through the courts.
Updated On: Aug 14, 2025
- Thomas must share \rupee three lakh with Raja and Hoja equally.
- Thomas must return \rupee thousand each to Raja and Hoja.
- Thomas need not share the \rupee three lakh with Raja and Hoja since it is the outcome of an unenforceable agreement.
- If Thomas does not pay them \rupee two lakh each, Raja and Hoja can sue him to recover their share.
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The Correct Option is C
Solution and Explanation
Step 1: Understanding the legal principle
- Under contract law, a wagering agreement (bet) is unenforceable, meaning that no party can sue to enforce its terms.
- Even if money is won or lost, the courts will not recognize claims arising from such agreements.
Step 2: Applying the fact situation
- Raja and Hoja gave Thomas money to place bets. This is clearly a wagering agreement.
- Thomas won \rupee three lakh from betting — the outcome of an unenforceable agreement.
Step 3: Legal consequence
- Since wagering agreements are void and unenforceable, Raja and Hoja cannot claim a legal share of the winnings.
- Even if there was an understanding between them, it is not recognized by law.
Step 4: Eliminating incorrect options
- Option (1) is wrong: Sharing is not legally required in an unenforceable agreement.
- Option (2) is wrong: The initial Rupee thousand each was part of the bet, so it cannot be legally claimed back under contract law.
- Option (4) is wrong: They cannot sue, as the court will not enforce a wagering contract.
Step 5: Conclusion
- The only correct answer is that Thomas need not share the winnings because the entire arrangement was based on an unenforceable wager.
\[ \boxed{\text{Thomas is under no legal obligation to share the winnings.}} \]
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