aleatory contract Meaning in the Cambridge English Dictionary Cambridge dictionaries logo

Meaning of “aleatory contract” in the English Dictionary

"aleatory contract" in Business English

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aleatory contractnoun [C]

uk   us  
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 ​insuranceagreements and derivatives (= ​financialproductsbased on the ​value of another ​asset) are aleatory ​contracts: The most common ​type of aleatory ​contract is an ​insurancepolicy, in which an ​insurancecompany 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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