An
aleatory
Aleatoricism or aleatorism, the noun associated with the adjectival aleatory and aleatoric, is a term popularised by the musical composer Pierre Boulez, but also Witold Lutosławski and Franco Evangelisti, for compositions resulting from "actio ...
contract is a
contract
A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to tr ...
where an uncertain event determines the parties' rights and obligations. For example, gambling, wagering, or betting typically use aleatory contracts. Additionally, another very common type of aleatory contract is an
insurance
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
policy.
The term was a classification developed in later medieval
Roman law
Roman law is the legal system of ancient Rome, including the legal developments spanning over a thousand years of jurisprudence, from the Twelve Tables (c. 449 BC), to the '' Corpus Juris Civilis'' (AD 529) ordered by Eastern Roman emperor Ju ...
to cover all contracts whose fulfilment depended on chance, including
gambling
Gambling (also known as betting or gaming) is the wagering of something of value ("the stakes") on a random event with the intent of winning something else of value, where instances of strategy are discounted. Gambling thus requires three el ...
,
insurance
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
, speculative investment and
life annuities. 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.
References
Contract law
Insurance law
Gambling regulation
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