aleatory contract

noun

Pronunciation: ˈeɪliətɔːri ˈkɒntrækt

Definition

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.

• The court ruled that the investment scheme was an aleatory contract, meaning the parties accepted the risk of an uncertain return.

Synonyms of aleatory contract

Words with a similar meaning to aleatory contract:

• wager
• contingent agreement
• speculative agreement
• aleatory agreement

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