Aleatory contract explained

An aleatory contract is a contract where an uncertain event determines the parties' rights and obligations.[1] [2] For example, gambling, wagering, or betting typically use aleatory contracts. Additionally, another very common type of aleatory contract is an insurance policy.[3]

The term was a classification developed in later medieval Roman law to cover all contracts whose fulfilment depended on chance, including gambling, insurance, speculative investment and life annuities.[4] Many modern forms of derivatives and options may in some cases also be considered aleatory contracts. For example, the French civil code contains a chapter on aleatory contracts, with specific provisions for gaming (gambling) and life annuities.[5]

References

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Notes and References

  1. Web site: Aleatory. Merriam-Webster.com. Merriam-Webster. 11 May 2018.
  2. Web site: What is ALEATORY CONTRACT?. TheLawDictionary.org.
  3. [Black's Law Dictionary]
  4. J. Franklin, The Science of Conjecture: Evidence and Probability Before Pascal (Baltimore: Johns Hopkins University Press, 2001), ch. 11.
  5. http://www.legifrance.gouv.fr/html/codes_traduits/code_civil_textA.htm Text of French Civil Code (in English)
  6. Web site: hellsbet.com. May 25, 2021.