https://www.taxtmi.com/caselaws?id=292746 Promissory notes may be unenforceable where their consideration arises from wagering agreements rather than genuine commercial sales. Agreements for rice purchases were assessed by examining delivery terms, option clauses, actual performance, production capacity and the parties' intended transactions. The relevant distinction was between bona fide contracts for goods and speculative arrangements designed to settle market-price differences without intended delivery. Under the Indian Contract Act, agreements by way of wager are void; consequently, a promissory note founded on such consideration is also void. Questions concerning a partner's authority and the validity of signatures may arise separately, but do not validate an instrument whose underlying consideration is a wager. en-us Thu, 13 Jun 1901 00:00:00 +0521 Thu, 07 Jan 2021 14:13:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=292746 Promissory notes may be unenforceable where their consideration arises from wagering agreements rather than genuine commercial sales. Agreements for rice purchases were assessed by examining delivery terms, option clauses, actual performance, production capacity and the parties' intended transactions. The relevant distinction was between bona fide contracts for goods and speculative arrangements designed to settle market-price differences without intended delivery. Under the Indian Contract Act, agreements by way of wager are void; consequently, a promissory note founded on such consideration is also void. Questions concerning a partner's authority and the validity of signatures may arise separately, but do not validate an instrument whose underlying consideration is a wager. Case-Laws Indian Laws Thu, 13 Jun 1901 00:00:00 +0521 https://www.taxtmi.com/caselaws?id=292746