adhesion contract

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Adhesion Contract

A standardized, take-it-or-leave-it contract that one party offers to another. That is, one party has no option to change any section of the contract through negotiation with the other party. Adhesion contracts are especially useful to companies that engage in a high volume of transactions because they give them greater predictability. However, it is not uncommon for one party to offer an adhesion contract that hides excessive penalties or other payments in the fine print; in such situations, courts often refuse to enforce the contract.

adhesion contract

A contract that is so grossly one-sided that courts will not enforce it, or will not enforce specific terms deemed to be unconscionable or oppressively unfair, especially if the consumer has no other choices in the marketplace.

References in periodicals archive ?
Today, an overwhelming number of adhesion contracts contain an ADR
clauses in adhesion contracts rose significantly during the past several
healthcare adhesion contracts, (42) which pose exaggerated voluntariness
The basis for voiding adhesion contracts also finds roots in notions of public policy.
106) The fact that adhesion contracts are interpreted through a different lens than a normal contract distinguishes them from other types of agreements.
dictated by adhesion contracts over which they have no control, fees and
cast their lot with adhesion contract drafters in order to win and
60) Clearly, however, it would not be proper to use such an example to support the proposition that agreements, otherwise enforceable as adhesion contracts under state law, sometimes may be preempted by section 301.
Under general Supremacy Clause analysis, not under section 301, the distinction between two-party, bargained agreements and mass-market adhesion contracts becomes significant.
Assuming, for the sake of argument, that the strongest presumption of enforceability is justified in the majority of marine insurance cases, it remains highly unlikely that marine insurance policies are never adhesion contracts.
Circuit and the Ninth Circuit initially recognized a presumption in favor of enforcing COL clauses, they used the presumption to protect the non-drafting parties to maritime adhesion contracts.