Aleatory contract
A contract whose performance depends on an uncertain event, the very nature of insurance that a prevention service turns into an obligation.
Article 1108 of the French Civil Code, as rewritten by the ordinance of February 10, 2016: a contract is aleatory when the parties make its effects, gains and losses, depend on an uncertain event. Insurance is the archetype, unlike a service contract, whose provider answers under the ordinary rules of liability. Predictive artificial intelligence blurs that line: the moment the insurer knows and intervenes, it steps out of the logic of cover and into that of obligation. An insurer that detects an imminent failure and does not pass on the alert exposes itself to fault-based liability that the premium never priced. The party that pays losses becomes a potential cause of them, and a liability item appears that neither pricing nor reserving anticipated.
The model flags an installation's imminent failure; the insurer does not pass on the alert; the installation explodes, and the insurer is sued for its own fault, not under its policy.
aleatory contract, contingent contract, aleatory contract example
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