A contract in which the insured’s payment is small relative to the insurer’s potential loss is called

• A. Aleatory contract
• B. Unilateral contract
• C. Contract of adhesion
• D. Conditional contract

Answer: (A)

The main idea is the aleatory nature of the contract, where the outcome depends on an uncertain event and the values exchanged are unequal. In insurance, the insured pays a relatively small premium, while the insurer potentially faces a far larger loss if a covered event occurs. That imbalance—small payment upfront for the chance of a large payout later—defines an aleatory contract. The other terms describe different features (one-sided promises, standard-form agreements, or conditions) and don’t capture this unequal, risk-dependent exchange.