Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,899,428,951 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Aleatory Contract

   Also found in: Dictionary/thesaurus, Financial 0.01 sec.

A mutual agreement between two parties in which the performance of the contractual obligations of one or both parties depends upon a fortuitous event.

The most common type of aleatory contract is an insurance policy in which an insured pays a premium in exchange for an insurance company's promise to pay damages up to the face amount of the policy in the event that one's house is destroyed by fire. The insurance company must perform its obligation only after the fortuitous event, the fire, occurs.



Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Feedback
Add definition
Mentioned in?  References in periodicals archive?   Legal browser?   Full browser?
 
Although the court defined the word as it is used generically in Black's Law Dictionary, (19) the Comment to [section] 379 of the Restatement (Second) of Contracts defines it more applicably: 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.
 
 
 
Legal Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.