aleatory contract

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Related to aleatory contract: contract of adhesion

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Noun

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

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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.

Insuring your future exit

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 "loss of chance" doctrine of damages for breach of contract

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.