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English definition of “aleatory contract”

aleatory contract

noun [C]
 
 
INSURANCE, FINANCE, LAW an agreement that is connected with an event that is not under someone's control , that may or may not happen, and of which the result is uncertain. Most insurance agreements and derivatives (= financial products based on the value of another asset) are aleatory contracts: The most common type of aleatory contract is an insurance policy, in which an insurance company must make payment only after a fortuitous event, such as a fire, occurs.
(Definition of aleatory contract from the Cambridge Business English Dictionary © Cambridge University Press)
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