Legal Principle An agreement entered into by way of a wager bet is unenforceable in law Fact Situati...........

Indian Contract Act (ICA)1872 Valid and Void Contracts

Legal Principle: 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 himrupees thousand each to enable him to bet with others about the outcome of a cricket match. Thomas wins rupees three lakh after betting three thousand rupees.

Which of the following statements is the most appropriate in relation to the legal principle stated above?

Thomas must share rupees three lakh with Raja and Hoja equally.

Thomas must return rupees thousand each to Raja and Hoja.

Thomas need not share the three lakh with Raja and Hoja since it is the outcome of an unenforceable agreement.

If Thomas does not pay them rupees two lakh each, Raja and Hoja can sue him to recover their share.

Explanation:

Thomas need not share the three lakh with Raja and Hoja since it is the outcome of an unenforceable agreement, because the contract is unenforceable for law from the starting so there is no need to share the gain because it is not unenforceable