aleatory contract

Also found in: Dictionary, Thesaurus, Financial, Wikipedia.
Related to aleatory contract: contract of adhesion

Aleatory Contract

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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

aleatory contract

a betting contract.
Collins Dictionary of Law © W.J. Stewart, 2006
References in periodicals archive ?
The Notion and Fundamental Characteristics of Aleatory Contracts
The aleatory contracts (that the former doctrine named gaming and betting (1)) are the contracts of onerous title, wherein the limits and even the existence of the obligation for one of the parties, or for both is not known at the moment of the contract conclusion because it depends upon an uncertain and future event, in this case the uncertainty being referred to the fulfillment or failure of the event (condition) or to the moment of fulfillment only (uncertain term).
One can easily notice that the aleatory element is essential and distinctive for aleatory contracts, compared to the commutative ones.
Legally, the game and the bet are defined as aleatory contracts in which the parties mutually agree to pay an amount or other thing to the winner, subject to the fulfillment or failure of an event which gives rise to opportunities for gain or loss for both or all contracting parties.
Under these conditions, the conclusion was imposed according to which the so-called self-help games of humanitarian aid did equal neither the mutual aid activities, nor the humanitarian ones, falling into the category of aleatory contracts governed by the 1864Civil Code, under the name of "game and wager." (18)
Franklin presents these topics in a chapter headed "Aleatory Contracts: Insurance, Annuities and Bets" the best part of the book, for my money.