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 ?
(62) The term "fairness"--as used in the new adhesion contract analysis--means marked by impartiality and honesty.
sort have all the characteristics of the classic adhesion contract. (62)
1972) (mandatory inclusion of arbitration clause as part of employment agreement between New York Stock Exchange member firm and employee not adhesion contract because employee was free to seek employment elsewhere if he objected to clause).
(103) Because the courts use the Supreme Court decisions dealing with COL clauses and forum-selection clauses interchangeably, courts have used Carnival Cruise Lines, which involved enforcement of a forum-selection clause, as support for decisions to enforce COL clauses in maritime contracts that are concededly adhesion contracts. However, often courts have used the strong presumption of enforceability to protect the non-drafting party to a maritime adhesion contract.
Ehrenzweig, Adhesion Contracts in the Conflict of Laws, 53 Colum.
Adhesion contracts are commonplace and part of our commercial setting, and we don't think it's any big deal,'" says Henry Lederman, a shareholder at Littler Mendelson.
(2) Consent for drug testing often comes from the pain contract (3)--agreements that have been called "unconscionable adhesion contracts" and may be unenforceable?
Randy Barnett's theory of form contracting (34)--a relatively adhesion-friendly theory, to boot--highlights a few special limitations of adhesion contracts. First, an actual manifestation of assent is important to trigger enforceability.