Difference between contingent contract and wagering agreements:
Contingent contract:
1) A contingent contract has been defined as a contract to do or not to
do something, if some event collateral to such contract does not
happen. As a contingent contract is wider in scope.
2) A contingent contract thus includes a wager. In other words a
wagering agreement is a contingent contract.
3) In a contingent contract mutual promises are not necessary.
4) Example A promises B to pay Rs 1000 if a ship does not return.
Here A is making a promise to pay but B is not making a similar
promise to pay A. Thus there is no mutuality of promise in a
contingent contract.
5) In a contingent contract there is a independent interest in this case.
6) In a contingent contract determination of an uncertain event is not
the sole condition.
7) A contingent contract is valid.
Wagering Agreement:
1) A wager is promise to pay money or money’s worth on the
happening or non-happening of an uncertain event.
2) A contingent contract need not necessarily be a wager. Thus we
can say that all wagering agreement are contingent but all
contingent contract are not wager.
3) In case of a wagering agreement promise must be mutual.
4) Example. In wagering agreement A agree to pay B 20 rupees if it
rains on Monday and if it does not B will pay 20 rupees to A. in
the above example there is mutuality of agreement but this
mutuality of promises is not necessary in case of a contingent
contract.
5) In a wagering agreement there is no independent interest apart
from the money to be won or lost
6) Example. A promises to pay Rs. 100 to B if it rains on Monday. It
is a wagering agreement as A has not independent interest.
7) In a wagering agreement determination of an uncertain event is the
main condition of the contract.
8) A wagering agreement is void/illegal