Question Details

Principle:
I. Wagering agreement are void
II. Collateral agreement to wagering contracts are valid.

Facts: XYZ Bank lends Rs. 40,000 to Sabu in order to enable him to award as prize to Randeep who is the winner of horse race. Later Sabu refused to pay the prize stating that horse racing is wagering agreement. Can XYZ Bank recover money from Sabu.

Options

Yes, it is only a collateral agreement to horse racing and therefore the bank can recover the money from Sabu.

Horse racing is illegal and therefore XYZ Bank cannot recover anything from Sabu.

No, as it is as wagering contract.

Bank can recover money from Sabu so that payment of prize money can be made to Randeep.

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