Aleatory contract
From Wikipedia, the free encyclopedia
An aleatory contract is a contract in which the performance of one or both parties is contingent upon the occurrence of a particular event. The most common type of aleatory contract are insurance policies.[1][2] Such insurance contracts may be a boon to one party but create a major loss for the other, as more in benefits may be paid out than actual premiums received, or vice versa.[3]
Gambling contracts and 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.[4]
[edit] References
 |
This legal term article is a stub. You can help Wikipedia by expanding it. |
