Meaning of “aleatory contract” in the English Dictionary

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"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 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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