a binding agreement that depends upon a contingency or uncertain event. definition of aleatory defined aleatory contract defined definition of aleatory contracts defined
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)
A contract such as an insurance contract in which the dollar amount to be paid by each party is not equal. For example, a policyholder could pay a premium and collect nothing from the insurer, or the policyholder could pay a premium and collect more from the insurer than the amount of premium paid if a loss occurs.
Insurance contracts are aleatory, which are contracts where the money relinquished by each party is not equal. For example, you may pay lots in premium, but never claim the money; or, you may claim for more than you have paid in premiums.
A contract in which the number of dollars to be given up by each party is not equal. Insurance contracts are of this type, as the policyholder pays a premium and may collect nothing from the insurer or may collect a great deal more than the amount of the premium if a loss occurs. (G)
A contract depending on an uncertain event or contingency.
a CONTRACT in which unequal values are exchanged, because there is an element of chance involved. An insurance policy is an aleatory contract due to the uncertainty of claims.
A contract in which one party provides something of value to another party in exchange for a conditional promise, which is a promise that the other party will perform a stated act upon the occurrence of an uncertain event. Insurance contracts are aleatory because the policyowner pays premiums to the insurer, and in return the insurer promises to pay benefits if the event insured against occurs. Contrast with commutative contract. TO TOP
