What characterizes an Aleatory contract?

An aleatory contract is characterized by its reliance on an uncertain event that has a significant impact on the exchanged values between the involved parties. In essence, this type of contract establishes that the performance or obligation of one party is contingent upon the occurrence of a particular event that is uncertain to happen. For instance, insurance contracts are classic examples of aleatory contracts, where the insurer agrees to pay a claim only in the event of a covered loss, which may or may not occur.

In these agreements, while one party may gain significantly more than they put in, the other might end up with less. This disparity underlines the essence of an aleatory contract, as it does not ensure an equal exchange of values or certainty of obligations, nor are the terms defined in a way that guarantees predictable outcomes for both parties.