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 ?
It would require or induce all businesses in a particular trade sector to use the same standard form contract, thereby removing the possibility of competition between contract terms.
Part IV examines how financial institutions operating in multiple jurisdictions have responded to AML and sanctions laws by amending their standard form contracts.
Contract law is being modified to facilitate the use of standard form contracts to strip individuals of many rights--rights arising in tort and rights provided by state and federal statutes enacted to restrict the misuse of economic power, constrain fraud on individual investors, deter discrimination, and protect workers from corporate attempts to secure their labor at the least possible cost.
MCO contracting over liability through standard form contracts is superior to contracting over liability through individual negotiable contracts executed at the point of service for many reasons.
The UCTL creates a rebuttable presumption that a contract is a standard form contract in circumstances where it is alleged that the contract is of such a kind.
Unconscionability, which applies most often to standard form contracts, (15) lets courts void clauses that are both procedurally unconscionable (nonnegotiable and buried in fine print) (16) and substantively unconscionable (grossly unfair) .
Businesses are increasingly inserting arbitration clauses into standard form contracts.
In some situations, the non-drafting party's decision not to inform himself or herself about the terms of a standard form contract may not itself be voluntary.
For a long time small businesses entering into contracts with larger businesses have had no choice but to accept all the terms of a standard form contract that they are given and that changes today, Mr McCormack said.
Currently, many small businesses entering into contracts with larger businesses have no option but to accept all the terms of the standard form contract that they are given.
If the parties intend to incorporate some or all of the terms of a standard form contract (e.
Imbalances in bargaining power are particularly common in agriculture supply chains and the ACCC wants farmers to be aware of these new protections, to ensure they get a fair deal when entering into a standard form contract with a larger business.
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