aleatory contract

English - English

Definition of aleatory contract in English English dictionary: A contract in which the number of dollars to be given up by each party is not equal Insurance contracts are of this type, as the policyholder pays a premium and may collect nothing from the insurer or may collect a great deal more than the amount of the premium if a loss occurs (G); A contract under which one party provides something of value to another party in exchange for a conditional promise, which is a promise that the other party will perform a stated act if a specified, uncertain event occurs Insurance contracts are aleatory because the policyowner pays premiums to the insurer, and in return the insurer promises to pay benefits if the event insured against occurs; A contract in which both parties realize that one party may obtain far greater value under the agreement than the other, and in which payment depends upon an unforeseen event An insurance contract is an aleatory contract in that it may or may not provide more in benefits than premiums paid; = A contract in which the number of dollars to be given up by each party is not equal Insurance contracts are of this type, as the policyholder pays a premium and may collect nothing from the insurer or may collect a great deal more than the amount of the premium if a loss occurs; One in which the values exchanged may not be equal but depend on an uncertain event; a contract whose performance by one party depends on the occurrence of an uncertain contingent event (but if it is contingent on the outcome of a wager it is not enforceable)