Aleatory contract
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][4]
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.[5] 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.[6]
References
- ^ "Aleatory". Merriam-Webster.com. Merriam-Webster. Retrieved 11 May 2018.
- ^ "What is ALEATORY CONTRACT?". TheLawDictionary.org.
- ^ Thomson-Gale Encyclopedia of American Law, courtesy of Jrank
- ^ Black's Law Dictionary, 7th ed. 1999
- ^ J. Franklin, The Science of Conjecture: Evidence and Probability Before Pascal (Baltimore: Johns Hopkins University Press, 2001), ch. 11.
- ^ Text of French Civil Code (in English) Archived 2008-06-29 at the Wayback Machine