Q.An agreement in which the parties have no interest other than the sum they stand to win or lose, and which is void under Section 30 of the Indian Contract Act, 1872, is a:

The feature that makes an agreement a mere bet — and void — is the absence of any genuine interest in the event beyond the stake itself.

A wagering agreement is one in which the parties have no interest in the uncertain event other than the stake they will win or lose; such agreements are void and unenforceable under Section 30 of the Indian Contract Act, 1872. Insurance is NOT a wager precisely because the insured has a genuine insurable interest and suffers a real loss the policy merely compensates.

Option-by-option analysis:

• (a) Incorrect — a contingent contract (Section 31) is valid and enforceable; insurance itself is one. …