What do aleatory contracts primarily depend on?

Aleatory contracts primarily depend on future occurrences and outcomes, which is the essence of what distinguishes them from other types of contracts. In an aleatory contract, the performance of one party is contingent upon an uncertain event or outcome, meaning that the contract's obligations are not defined until a specified event occurs. This uncertainty creates a scenario where the benefits to one party can significantly exceed what they contributed, depending on the outcome of that event.

For example, in insurance policies, the insurer agrees to pay out claims based on specified conditions that may or may not happen, such as accidents or natural disasters. The insured pays premiums while the insurer retains the risk of eventual payout, making the contract dependent on future events that affect the obligations of the parties involved.

The other choices, while relevant to contracts in general, do not specifically capture the defining feature of aleatory contracts. The legal competency of the parties and the clarity of terms are important in ensuring that a contract is valid but are not unique to aleatory agreements. Similarly, an equal exchange of value typically characterizes a standard contract rather than one where benefits fluctuate based on the occurrence of uncertain future events.