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Insurance

Aleatory contract

An aleatory contract is a binding agreement in which the outcome is determined by an uncertain event. This type of contract is commonly used in the insurance industry, where the results are based on unforeseen circumstances. Aleatory contracts are characterized by their unpredictability, making them a crucial tool in managing risk. As a knowledgeable professor of finance, it is important to understand the significance of aleatory contracts in the world of insurance and how they provide protection for individuals and businesses.
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