Agreements by way of wager are void, but what does that mean exactly? In this article, we will delve into the legal world of contracts and explain why agreements that are made purely by gambling are not legally enforceable.

Firstly, let`s define what is meant by “agreements by way of wager”. This refers to a contract where the parties involved agree to give something of value (usually money) to each other based on the outcome of a future event that is uncertain. Essentially, it is a bet or gamble between two parties.

The reason why agreements by way of wager are void is due to public policy reasons. The law maintains that contracts should only be enforceable when there is a valid consideration exchanged between the parties. Consideration refers to something of value that each party gives up in return for something else. In a wagering contract, there is no consideration other than the bet or gamble, which is essentially just a promise to pay if the outcome is in their favor.

Furthermore, agreements by way of wager are seen as promoting unethical behavior and vices such as gambling, which can lead to addiction and financial hardship. The law therefore seeks to discourage such behavior by making these types of contracts void.

It is important to note that not all contracts that involve chance or uncertainty are considered wagers. For example, insurance contracts are legally enforceable because they involve the exchange of valid consideration and serve a legitimate purpose for risk management.

In conclusion, agreements by way of wager are void because they do not involve the exchange of valid consideration and are seen as promoting unethical behavior. It is important to understand the legal implications of such contracts in order to avoid any potential legal disputes. Instead, it is advisable to only enter into contracts that involve the exchange of valid consideration and serve a legitimate purpose.