Aleatory Contract (n):
... a binding agreement that depends upon a contingency or uncertain event.
A contract in which the consideration or monetary value between the parties to the contract is not equal.
'Aleatory Contract:
Characterized by two design elements:
Chance element - Performance of at least one of the parties is dependent on chance.
Uneven exchange - And, one party promises to do much more than the other party.
Most non-insurance contracts are commutative (i.e.: the exchange is of equal values.) Many people mistakenly employ this concept when thinking about insurance. An insurance contract will only result in an equal exchange by coincidence or over a very long period of time.
The uneven exchange is not a flaw in the contract.
Rather, it is a fundamental feature of a contract that is both conditional and aleatory.'
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