Aleatory Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Aleatory, written in plain English, along with examples of how it is used.
What is Aleatory?
n. to appraise is to give a just valuation of property. The need arises in such times where the justice to be done to a party depends on the just value of a property, for example in distributing assests of the deceased, evaluating mortages, determining minimum auction price, finding out damage to public property, fixing the value of stolen/damaged property for the purposes of insurance or determining the worth of a would-be-insured property to determine the value of the premium to be charged, etc.
History and Meaning of Aleatory
Aleatory is a term that finds its roots in the Latin word "alea," which means "dice." In legal terms, aleatory refers to a contract or agreement that is contingent upon the occurrence of an uncertain event. In other words, the outcome of the contract depends on a future event that is beyond the control of either party.
Examples of Aleatory
A company enters into a contract with a celebrity to endorse their product, with payment dependent on how well the product sells.
An insurance policy that provides coverage for a specific event, such as a natural disaster or accident. The premium paid is based on the likelihood of the event occurring.
A real estate developer agrees to purchase a piece of property if they receive a permit for construction, which is uncertain at the time of the agreement.
Legal Terms Similar to Aleatory
Contingency: A contract or agreement that is dependent on the occurrence of a specific event.
Force Majeure: A provision in a contract that excuses one or both parties from performance in the event of unforeseen circumstances beyond their control.
Risk: The possibility of loss or damage due to an uncertain event.