Meaning & use
aleatory contract
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Meaning
nouncountablelegalspecialist
a contract in which the parties' obligations depend on an uncertain event, so the benefits may be unequal.
Grammar: Countable; used mainly in legal writing. You can say 'an aleatory contract' or 'aleatory contracts'.
Patterns
- an aleatory contract
- enter into an aleatory contract
- aleatory contract law
Insurance policies are often considered aleatory contracts because the payout depends on an unpredictable event.
The court ruled that the agreement was an aleatory contract, not a fixed-price sale.
In an aleatory contract, one party may receive much more than they put in, or nothing at all.
Word forms
| plural | aleatory contracts |
|---|
Common combinations
- aleatory contract in insurance
- An aleatory contract in insurance means the insurer may pay out far more than the premium collected.
- nature of an aleatory contract
- The nature of an aleatory contract is that performance depends on chance.
- enforce an aleatory contract
- Courts will enforce an aleatory contract if it meets all other legal requirements.
Synonyms and how they differ
- contract of chance
- A less technical way to say the same thing, but not a standard legal term.
- gambling contract
- Focuses on the risky, betting aspect; may not cover all aleatory contracts like insurance.
Opposites
Word family
- aleatory adjective
- Depending on chance or an uncertain event.
Commonly confused: aleatory contract or elementary?
aleatory contract vs elementary
Sounds somewhat similar but means 'basic' or 'simple', not related to contracts.
Practice
What is an aleatory contract?
Choose one answer.
An aleatory contract is defined by its dependence on chance or an uncertain event, such as insurance. Option A describes a renewable contract, C is about language, and D is about enforceability, none of which define 'aleatory'.
Make it your own
Write a sentence using “aleatory contract”, then check it and compare it with the examples above.