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 ?
adhesion contracts, however, can significantly raise the cost of
consumers in adhesion contracts, than a further stricture on
(78) Many adhesion contract drafters have sought to bar such
In the arbitration process when adhesion contract drafters have
Some jurisdictions employ a two-prong analysis for unconscionability that involves adhesion contracts. That is, the agreement must be both procedurally and substantively unconscionable.
Contract drafters have used FAA-backed adhesion contracts to change
Nevertheless, it is generally accepted that courts may place upon adhesion contracts certain limitations, such as construction against the drafting party and the unenforceability of terms that are unconscionable or against public policy.
Under the common law, undue influence and duress were the predecessors to the modern doctrine of business compulsion, all of which contributed to the law pertaining to adhesion contracts. Adhesion contracts are generally described as those in which one party has superior bargaining power, and thus compels the other party to accept terms which would otherwise not be accepted.
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. (249) First, certain sole proprietors, such as fisherman and shrimpers, are dependent upon their vessels for their livelihood.