CLAT LLM 2016 Question Paper with answer key for online practice

Question : 28 of 50

Marks: +1, -0

Principles :1. Wagering agreements are void.2. Collateral agreements to wagering contracts are valid.
Facts : XYZ Bank lends ₹ 40,000 to Sabu in order to enable him to a ward as prize to Randeep who is the winner of horse race. Later Sabu refuses to pay the prize stating that horse racing is wagering agreement. Can XYZ Bank recover money from Sabu?

No as it is a wagering contract.
Bank can recover money from Sabu so that payment of prize money can be made to Randeep.
Yes as it is only a collateral agreement to horse racing and therefore, the bank can recover the money from Sabu.
Horse racing is illegal and therefore, XYZ Bank cannot recover anything from Sabu.

Validate

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