ARTICLE II: ON THE TRIPLE CONTRACT

1015. • The triple contract is that by which someone contributing money makes an agreement with another associate that, whatever may happen, the whole sum be restored to him with a certain profit, yet a profit less than that which he could probably hope for; or it is a contract of society, to which two other contracts are joined, namely insurance of the principal and insurance of the profit, or sale of the hope of receiving a greater profit for a lesser profit that is certain and insured. It is instituted in this way. I contract, for example, with Peter, by giving him a sum of money for trading. But, since the hope of gaining 15 for 100 shines before me, and on the other hand I fear lest I lose the principal, I enter a second contract with Peter, giving him 5 for 100, if he is willing to take upon himself the insurance of the principal. This second contract having been entered, there now remain to me only 10 for 100 to be gained. But I would prefer a profit still less, but certain, than a greater and uncertain one. Therefore I propose to my associate that he give me only 5 for 100, but certainly refund it, whatever may occur. Hence there is given a triple contract, namely of society, of insurance of the principal, and of insurance of the profit.

1016. • Query. Whether the triple contract is licit?

Resp. There is a twofold probable opinion among Theologians. St. Alphonsus explains both.¹ Since, with the Church permitting, it is licit to exact an increase on the occasion of a loan, this contract no longer pertains to practice here.