adhesion contract

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Related to Standard form contract: contract of adhesion, unfair contract terms, Promissory estoppel

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 ?
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.
Standard form contracts are useful instruments when employed to express the reasonable expectations of parties who lack the time, the wisdom, or the occasion to negotiate a reasonable bargain.
Supreme Court in 1889 recognized the problem of standard form contracts and refused to enforce an unjust provision in a bill of lading.
38) Similarly, mill trusts resemble standard form contracts more than testamentary instruments.
As with standard form contracts, the substantive unconscionability prong would hinge on the harshness of a term.
Clubs are often presented with standard form contracts with little opportunity for negotiation, ACCC Deputy Chair Dr Michael Schaper said.
The Australian Consumer Law deals with unfair contract terms in standard form contracts.
The ACCC found that in most cases, the businesses under review chose to make changes to their standard form contracts.
Mr Sims said, however, some businesses have not fully cooperated with the ACCC during the review or have chosen not to change their standard form contracts to address problematic terms.
In both the UAE and Qatar (and indeed in many other Gulf countries), procurers of major infrastructure have generally opted for the FIDIC Standard Form Contracts to deliver their projects.
Testing a Law and Economics Approach to Standard Form Contracts 1 (N.
1217 (1982); Russell Korobkin, Bounded Rationality, Standard Form Contracts, and Unconscionability, 70 U.
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