question_answer

Direction: This section consists of fifty (50) questions. Follow the instructions carefully and choose the most appropriate option:

The question number 111-145 in this section consists of legal proposition(s) (hereinafter referred to as 'principle') and facts. Such principles may or may not be true in the real and legal sense, yet you have to conclusively assume them to be true for the purpose of this section. In other words, in answering the following question further, you must not assume any facts other than those stated in the question. The objective of this section is to test your interest towards study of law, research aptitude and problem-solving ability, even if the 'most reasonable conclusion' arrived at may be absurd or unacceptable for any other reason.

To answer a question, the given principle is to be applied to the given facts so as to arrive at most reasonable conclusion.

Principle:

I. Wagering agreement is void.

II. Collateral agreement to wagering contracts is 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?

A) Yes, it is only a collateral agreement to horse racing and therefore the bank can recover the money from Sabu.

B) Horse racing is illegal and therefore XYZ Bank cannot recover anything from Sabu.

C) No, as it is as wagering contract.

D) Bank can recover money from Sabu so that payment of prize money can be made to Randeep.