Which term describes the situation where both parties to a contract may NOT receive equal value?

• A. Aleatory
• B. Adhesion
• C. Unilateral
• D. Bilateral

Answer: (A)

Aleatory describes contracts in which the outcomes depend on an uncertain future event, so the value exchanged between the parties may be unequal. In insurance, the insured pays premiums (a relatively small, fixed amount) while the potential benefit if a covered event occurs can be much larger. If the event happens, the insured may receive a large payout; if it doesn’t, the insured gets nothing. That uncertainty and potential for greatly unequal value is what characterizes an aleatory contract.

Adhesion isn’t about value balance; it’s about one party dictating terms in a take-it-or-leave-it form. Unilateral means only one party makes a promise, while bilateral means both sides promise something. None of those describe the unequal value that can result from an uncertain future event the way aleatory does.