What does "aleatory" refer to in contract law?

In contract law, "aleatory" refers to contracts that depend on the occurrence of a future uncertain event. These are agreements wherein at least one party's obligation is contingent upon the happening of a specific event that may or may not take place. Examples of aleatory contracts include insurance agreements, where an insurer is obliged to pay a claim only if a particular event, such as a loss or damage, occurs.

The essence of aleatory contracts is that they introduce an element of chance or unpredictability into the performance obligations of the parties involved. This characteristic makes them distinct from other types of contracts, which may have more predictable and defined duties and outcomes. The focus on uncertainty in aleatory contracts underscores their reliance on external events, setting them apart from contracts that are straightforward and unambiguous in their terms.