Aleatory - sustany/dvg GitHub Wiki

�Aleatory� means that something is dependent on an uncertain event, a chance occurrence. Aleatory is used primarily as a descriptive term for insurance contracts. An aleatory contract is a contract where performance of the promise is dependent on the occurrence of a fortuitous event. In a typical aleatory contract, one party performs an absolute act. The full consideration for this act is the other party�s promise to perform an act if a fortuitous event occurs.�

For example:

A fire insurance company promises A that in consideration of A�s payment of a premium, it will pay A $20,000 if A�s house burns down by a fire caused by lightning. In this aleatory contract, the fire insurance company will not be liable if A�s house burned down by a fire caused by an overheated fireplace.�