Follow the instructions carefully and choose the most appropriate option:
In this section consist 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 are void.
II. Collateral agreement to wagering contracts are 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.
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