What is the main characteristic of an aleatory contract?

An aleatory contract is defined by its dependence on an uncertain event, which means that the performance or obligations of the parties involved in the contract are contingent upon the occurrence of a specific event that is uncertain to happen. In the context of insurance, this characteristic means that the insurer might pay a claim only if a certain event occurs, such as damage to property or a personal injury.

This element of uncertainty is fundamental to the nature of aleatory contracts; neither party knows for sure when or if the event will happen, which can lead to differing levels of risk and potential benefit for each party. The unpredictability inherent in the contract makes it distinct from other types of agreements where outcomes and obligations are more certain and guaranteed. The focus on the uncertain event aligns perfectly with the concept of risk-sharing at the heart of insurance agreements.

While other types of contracts may focus on guaranteed payouts, mutual agreement on terms, or even assessments of risk, it is the reliance on uncertainty and what that uncertainty entails that defines the aleatory nature of these contracts.