aleatory contract


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Related to aleatory contract: contract of adhesion
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Noun1.aleatory contract - a contract whose performance by one party depends on the occurrence of an uncertain contingent event (but if it is contingent on the outcome of a wager it is not enforceable)aleatory contract - a contract whose performance by one party depends on the occurrence of an uncertain contingent event (but if it is contingent on the outcome of a wager it is not enforceable)
contract - a binding agreement between two or more persons that is enforceable by law
References in periodicals archive ?
An aleatory contract is defined as "an agreement concerned with an uncertain event that provides for unequal transfer of value between the parties.
One technical aspect of insurance is that it is an aleatory contract - all or nothing, akin to gambling.
Black's Law Dictionary says that an aleatory contract is one "in which promise by one party is conditioned on a fortuitous [unexpected or accidental] event.
aleatory contract: Where a contract between two parties depends upon an uncertain event and where one party may pay a very small amount and receive a very large amount upon the occurrence or nonoccurrence of the specified event, it is called an aleatory contract.
An aleatory contract is one in which at least one party is under a duty that is conditional on the occurrence of an event that, so far as the parties to the contract are aware, is dependent on chance.
Such it is defined in Article 1173, New Civil Code, the aleatory contract is a contract that through its nature or by the parties' will offers at least to one contracting party the chance of advantage, exposing it at the same time to the risk of looses, that depend upon an uncertain prospective event.