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 ?
129) It thereby allowed adhesion contract drafters to continue
141) and in the adhesion contract context because of an insistence on
While Hooters is an extreme case, many adhesion contract drafters
arrangements with adhesion contract drafters in the hope of securing a
Compulsory ADR, in both its adhesion contract and its court-annexed
In the adhesion contract setting, such a shift in attitude will