aleatory contract

noun

Meaning

A legal agreement in which the performance of one or both parties depends upon the occurrence of an uncertain, chance-based event.

Examples

  • Because insurance policies are an aleatory contract, the insurer may never have to pay a claim if the insured event never happens.
  • Gambling agreements are often classified as an aleatory contract since the outcome is entirely dependent on chance.

Synonyms: wager, contingent agreement, speculative agreement, aleatory agreement