Aleatory contracts

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Related to Aleatory contracts: contract of adhesion, Unilateral Contracts

ALEATORY CONTRACTS, civil law. A mutual agreement, of which the effects, with respect both to the advantages and losses, whether to all the parties, or to some of them, depend on an uncertain event. Civ. Code of Louis. art. 2951.
     2.-1. These contracts are of two kinds; namely, 1. When one of the parties exposes himself to lose something which will be a profit to the other, in consideration of a sum of money which the latter pays for the risk. Such is the contract of insurance; the insurer takes all the risk of the sea, and the assured pays a premium to the former for the risk which he runs.
     3.-2. In the second kind, each runs a risk which is the consideration of the engagement of the other; for example, when a person buys an annuity, he runs the risk of losing the consideration, in case of his death soon after, but he may live so as to receive three times the amount of the price he paid for it. Merlin, Rep. mot Aleatoire.

References in periodicals archive ?
As a corollary of the above, our opinion is that the gaming and betting are contracts falling within the species of aleatory contracts, but, as they are characterized by traits that individualize them in a very pronounced way within this species, they are well defined and original institutions both from a purely legal point of view and in terms of their social component.
The former regulation stated an incomplete definition under Article 1653 former Civil Code that provided the fact that in the aleatory contracts, the effects "regarding the benefits and losses for all parties, or for one or fewer parties depend on an uncertain event.
The annuity granted gratuitously is not deemed to have any aleatory element, as the aleatory contracts represent a subdivision of contracts with onerous title.
The odds of winning or loss in aleatory contracts must be considered at the conclusion of the contract so that the parties conclude knowingly the contract.
As for the aleatory contracts, in general, the evident disproportion between the benefits of the parties is a possible consequence of the aleatory nature of the contracts.