- 04/25/2019 at 1:55 pm #616981EduGorillaKeymasterSelect Question Language :
Directions: The question consists of two statements, one labelled as Principle(s) and the other as Facts. You are to examine the principle and apply it to the given facts carefully and select the best option.
1: A contract which is frustrated is void.
2: A contract based on contingent events is valid but a wagering contract is void ab initio.
Facts: Rakesh enters into a contract with Rajesh that if it rains, then he will give Rajesh Rs. 10 thousand and if it snows, then Rajesh will give Rakesh Rs. 10 thousand. However, it comes out to be a bright sunny day. The parties want to know if the contract is void.
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- The contract is frustrated, so there is no question about the contract's validity.
- Both parties do not have to give each other anything as both have lost or won the bet depending on the way one sees it.
- The contract is valid as it was not based on happening of contingent events.
- The contract is void ab initio as it is based on the wager.
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