Which statement best describes the nature of a wagering agreement?

A wagering agreement is fundamentally based on the outcome of uncertain events, which means that the parties involved are betting on an event that has uncertain results. This uncertainty is a key characteristic of wagering agreements, distinguishing them from other types of contracts that involve definite, known outcomes.

In a wagering agreement, neither party knows for certain what the result will be, which creates the aspect of chance that is inherent to any wager. The focus is on this unpredictability, as the agreement relies on an event occurring that neither party can control or predict with certainty.

The other statements don't accurately capture the essence of wagering agreements. While they might imply aspects of such agreements, they do not hold up against the defining factor of uncertainty that characterizes these types of contracts. For instance, wagering agreements do not guarantee financial returns, and they are generally not considered legally enforceable in many jurisdictions, reflecting the legal principle that contracts based on chance are often void. Additionally, notarization is not a requirement for the validity of a wagering agreement. Thus, the statement regarding uncertainty is the most accurate representation of what a wagering agreement entails.