CLAT 2016 Question Paper with answer key for online practice

Question : 112 of 200

Marks: +1, -0

Principle :
1. Wagering agreement are void.
2. 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.

Yes it is only a collateral agreement to horse racing and there fore the bank can recover themoney 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 toRandeep.

Validate

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