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.

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