Question

The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as ______.

1) Apparent
2) Estoppel
3) Aleatory
4) Unilateral

Answer 1

An aleatory contract is where parties may not receive equal value since performance depends on an uncertain event. In contracts like insurance, the benefits are uneven depending on whether the event occurs or not.

Step-by-step explanation:

The term which describes the fact that both parties of a contract may not receive the same value is referred to as aleatory. An aleatory contract is one in which the performance and obligations of the parties depend on an uncertain event. In such contracts, it is not required that the consideration or value provided by the parties be equal, because the nature of the agreement is based on the occurrence of the event, which may benefit one party more than the other. For example, insurance policies are a common type of aleatory contract where the insurer may collect premiums for many years without the insured making a claim, or the insurer may have to pay out a large sum upon an unexpected event like a natural disaster.