In the State of Karnataka Collateral Transactions to a Wagering Agreement are ........

Indian Contract Act (ICA)1872 Valid and Void Contracts

In the State of Karnataka, Collateral Transactions to a Wagering Agreement are

Voidable

Illegal and Void

Valid

Contingent

- In Karnataka, according to the Public Gambling Act and judicial interpretations, a wagering agreement itself is void, but not illegal.

- This means wagering agreements can’t be enforced in a court of law, but entering into them isn’t a crime.

- Collateral transactions are those linked indirectly to the main wagering agreement (e.g., giving a loan to place a bet).

- Since wagering is void but not illegal in Karnataka, collateral agreements are valid.

- They can be enforced unless they’re otherwise void or illegal by some other law.

Option 3: Valid is correct.

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