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 ?
Insurance policies are known as aleatory contracts. 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." In other words, before an insurance contract performs, a fortuitous event must happen to the insured.
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.
The extent and even the existence of an obligation at the time of an aleatory contract conclusion may be uncertain for one or all parties to the contract; however the chances of gain or loss exist always for all contracting parties and are never of a unilateral nature.