LANDMARK CASE

Gherulal Parakh v. Mahadeodas Maiya

AIR 1959 SC 781 · Supreme Court of India · Contract law

At a glance

Citation: AIR 1959 SC 781
Court: Supreme Court of India
Area of law: Contract law
In one line: No. Wagers are void but not illegal, so collateral agreements are enforceable.

1 Facts

Partners shared losses from wagering transactions.

2 Issue

Is an agreement collateral to a wager illegal?

3 What the court decided

No. Wagers are void but not illegal, so collateral agreements are enforceable.

4 Why it matters

Clarifies void versus illegal.

5 Think about it

Why does the difference matter?

6 Analyse it yourself

Read the full judgment from an official source or a law database, then brief it in seven steps: facts, issues, arguments, decision, ratio, obiter and significance. Always check the citation before you rely on it.

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