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]

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.^{[citation needed]}

References

^ "Aleatory". Merriam-Webster.com. Merriam-Webster. Retrieved 11 May 2018.
^ "What is ALEATORY CONTRACT?". TheLawDictionary.org.
^ 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.

[1] "Aleatory". Merriam-Webster.com. Merriam-Webster. Retrieved 11 May 2018.

[2] "What is ALEATORY CONTRACT?". TheLawDictionary.org.

[3] Black's Law Dictionary, 7th ed. 1999

[4] J. Franklin, The Science of Conjecture: Evidence and Probability Before Pascal (Baltimore: Johns Hopkins University Press, 2001), ch. 11.

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