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Simple English definitions for legal terms
aleatory promise
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A quick definition of aleatory promise:
An aleatory promise is a type of promise that is dependent on the occurrence of a chance event or an event that the parties believe is chance. It is a conditional promise that is not certain to happen. For example, a promise to pay someone if it rains tomorrow is an aleatory promise because it depends on the chance of rain. This type of promise is different from a binding promise, which is a promise that the law will enforce.
A more thorough explanation:
An aleatory promise is a type of promise that is conditional on the occurrence of a fortuitous event, or an event that the parties believe is fortuitous. This means that the promise will only be fulfilled if something specific happens, like winning the lottery or a certain stock price increasing.
For example, if a person promises to give their friend $100 if their favorite sports team wins the championship, that is an aleatory promise. The promise is only valid if the team wins the championship, which is a fortuitous event.
Another example of an aleatory promise is a contract between an insurance company and a policyholder. The policyholder pays premiums to the insurance company, and in return, the insurance company promises to pay out a certain amount of money if a specific event occurs, like a car accident or a house fire.