Aleatory contract

Last updated

An aleatory contract is a contract where an uncertain event determines the parties' rights and obligations. [1] [2] For example, gambling, wagering, or betting typically use aleatory contracts. Additionally, another very common type of aleatory contract is an insurance policy. [3]

The term was a classification developed in later medieval Roman law to cover all contracts whose fulfilment depended on chance, including gambling, insurance, speculative investment and life annuities. [4] 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. [5]

Related Research Articles

<span class="mw-page-title-main">Eponym</span> Person or thing after which something is named

An eponym is a person, a place, or a thing after whom or which someone or something is, or is believed to be, named. The adjectives which are derived from the word eponym include eponymous and eponymic.

<span class="mw-page-title-main">Motto</span> Short sentence expressing a motivation

A motto is a sentence or phrase expressing a belief or purpose, or the general motivation or intention of an individual, family, social group, or organisation. Mottos are usually found predominantly in written form, and may stem from long traditions of social foundations, or from significant events, such as a civil war or a revolution. A motto may be in any language, but Latin has been widely used, especially in the Western world.

<span class="mw-page-title-main">Travel</span> Movement of people between relatively distant geographical locations

Travel is the movement of people between distant geographical locations. Travel can be done by foot, bicycle, automobile, train, boat, bus, airplane, ship or other means, with or without luggage, and can be one way or round trip. Travel can also include relatively short stays between successive movements, as in the case of tourism.

Webster's Dictionary is any of the English language dictionaries edited in the early 19th century by Noah Webster (1758–1843), an American lexicographer, as well as numerous related or unrelated dictionaries that have adopted the Webster's name in his honor. "Webster's" has since become a genericized trademark in the United States for English dictionaries, and is widely used in dictionary titles.

Caveat emptor is Latin for "Let the buyer beware". It has become a proverb in English. Generally, caveat emptor is the contract law principle that controls the sale of real property after the date of closing, but may also apply to sales of other goods. The phrase caveat emptor and its use as a disclaimer of warranties arises from the fact that buyers typically have less information than the seller about the good or service they are purchasing. This quality of the situation is known as 'information asymmetry'. Defects in the good or service may be hidden from the buyer, and only known to the seller.

A demonym or gentilic is a word that identifies a group of people in relation to a particular place. Demonyms are usually derived from the name of the place. Demonyms are used to designate all people of a particular place, regardless of ethnic, linguistic, religious or other cultural differences that may exist within the population of that place. Examples of demonyms include Cochabambino, for someone from the city of Cochabamba; French for a person from France; and Swahili, for a person of the Swahili coast.

A syndicate is a self-organizing group of individuals, companies, corporations or entities formed to transact some specific business, to pursue or promote a shared interest.

Boilerplate text, or simply boilerplate, is any written text (copy) that can be reused in new contexts or applications without significant changes to the original. The term is used about statements, contracts, and computer code, and is often used in the media pejoratively to refer to cliché or unoriginal writing.

<span class="mw-page-title-main">Act of God</span> Natural disaster outside human control, for which no person is at fault

In legal usage in the English-speaking world, an act of God or damnum fatale is a natural hazard outside human control, such as an earthquake or tsunami, for which no person can be held responsible. An act of God may amount to an exception to liability in contracts or it may be an "insured peril" in an insurance policy. In Scots law the equivalent term is damnum fatale, while most Common law proper legal systems uses the term act of God.

Legality, in respect of an act, agreement, or contract is the state of being consistent with the law or of being lawful or unlawful in a given jurisdiction, and the construct of power.

<span class="mw-page-title-main">American and British English spelling differences</span> Comparison between US and UK English spelling

Despite the various English dialects spoken from country to country and within different regions of the same country, there are only slight regional variations in English orthography, the two most notable variations being British and American spelling. Many of the differences between American and British English / Commonwealth English date back to a time before spelling standards were developed. For instance, some spellings seen as "American" today were once commonly used in Britain, and some spellings seen as "British" were once commonly used in the United States.

<span class="mw-page-title-main">Surrender (military)</span> Giving up control over territory or resources to another power

Surrender, in military terms, is the relinquishment of control over territory, combatants, fortifications, ships or armament to another power. A surrender may be accomplished peacefully or it may be the result of defeat in battle. A sovereign state may surrender following defeat in a war, usually by signing a peace treaty or capitulation agreement. A battlefield surrender, either by individuals or when ordered by officers, normally results in those surrendering becoming prisoners of war.

In the United States, an annuity is a financial product which offers tax-deferred growth and which usually offers benefits such as an income for life. Typically these are offered as structured (insurance) products that each state approves and regulates in which case they are designed using a mortality table and mainly guaranteed by a life insurer. There are many different varieties of annuities sold by carriers. In a typical scenario, an investor will make a single cash premium to own an annuity. After the policy is issued the owner may elect to annuitize the contract for a chosen period of time. This process is called annuitization and can also provide a predictable, guaranteed stream of future income during retirement until the death of the annuitant. Alternatively, an investor can defer annuitizing their contract to get larger payments later, hedge long-term care cost increases, or maximize a lump sum death benefit for a named beneficiary.

A life annuity is an annuity, or series of payments at fixed intervals, paid while the purchaser is alive. The majority of life annuities are insurance products sold or issued by life insurance companies however substantial case law indicates that annuity products are not necessarily insurance products.

<span class="mw-page-title-main">Pistol</span> Type of handgun where the firing chamber is integral to the barrel

A pistol is a type of handgun. The word "pistol" first appeared in English c. 1570, when early handguns were produced in Europe, and is derived from the Middle French pistolet, meaning a small gun or knife. In colloquial usage, the word "pistol" is often used to describe any type of handgun, inclusive of revolvers and the pocket-sized derringers.

In the lineal kinship system used in the English-speaking world, a niece or nephew is a child of an individual's sibling or sibling-in-law. A niece is female and a nephew is male, and they would call their parents' siblings aunt or uncle. The gender-neutral term nibling has been used in place of the common terms, especially in specialist literature.

Longevity insurance, describes the process of mitigating against Longevity risk. Such risk mitigation is often achieved using a longevity annuity or Tontine, qualifying longevity annuity contract (QLAC), deferred income annuity, is an annuity contract designed to provide to the policyholder payments for life starting at a pre-established future age, e.g., 85, and purchased many years before reaching that age.

<span class="mw-page-title-main">Contract</span> Legally binding document establishing rights and duties between parties

A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more mutually agreeing parties. A contract typically involves the transfer of goods, services, money, or a promise to transfer any of those at a future date. In the event of a breach of contract, the injured party may seek judicial remedies such as damages or rescission. A binding agreement between actors in international law is known as a treaty.

In civil law, obrogation is the modification or repeal of a law in whole or in part by issuing a new law.

The term secondary market annuity is a misnomer. Certain salespeople use it as a term to describe an investment in factored structured settlement payment rights. The financial instrument that certain salespeople call a "secondary market annuity" comes about when a structured settlement factoring company buys certain structured settlement payment rights. The originating structured settlement factoring company may then further assign the rights (or subsets of thoe rights to investors for monetary consideration. The factoring company is not an insurance company and the investors not paying a premium to an insurance company. The investment that some salespeople call a secondary market annuity does not meet the definition of annuity under the insurance law for many states and does not enjoy the statutory protections.

References

  1. "Aleatory". Merriam-Webster.com. Merriam-Webster. Retrieved 11 May 2018.
  2. "What is ALEATORY CONTRACT?". TheLawDictionary.org.
  3. Black's Law Dictionary, 7th ed. 1999
  4. J. Franklin, The Science of Conjecture: Evidence and Probability Before Pascal (Baltimore: Johns Hopkins University Press, 2001), ch. 11.
  5. Text of French Civil Code (in English) Archived 2008-06-29 at the Wayback Machine

[1]

  1. "hellsbet.com". May 25, 2021.