In which type of contract do the values exchanged typically differ?

An aleatory contract is characterized by a mutual exchange that is contingent on a specific event occurring, where the values exchanged do not have to be equivalent. This often involves one party receiving a payoff while another party may not receive a return of equal value, depending on the outcome of a particular event.

For example, in insurance contracts—such as those for title insurance—an individual pays a premium to secure coverage, but the actual payout only occurs if a certain event arises, like a title defect coming to light. The insurer may end up paying out significantly more than what was collected in premiums if a significant claim arises, thus demonstrating the differential in value exchanged.

This differentiates aleatory contracts from other types, such as bilateral contracts, where both parties exchange promises of equal value, or commutative contracts where the values are expected to be equal as a matter of agreement. Personal contracts are typically based on the qualities or personal attributes of the parties involved rather than the values exchanged.