aleatory contract

aleatory contract definition - business

aleatory contract

An agreement between parties in which the performance by one party is dependent on an uncertain event or contingency. A liability insurance policy is an example of an aleatory contract in that payment by the insurance company is dependent on an event that results in a liability of the insured.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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