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 ?
In order to fully understand the development of the adhesion contract, it is helpful to review briefly traditional contract doctrine in American jurisprudence.
62) The term "fairness"--as used in the new adhesion contract analysis--means marked by impartiality and honesty.
Montana adopted legislation that required adhesion contract drafters to
129) It thereby allowed adhesion contract drafters to continue
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.
As mentioned earlier, injecting a section 301 preemption analysis at this point only obfuscates the issue of enforceability under contract law and ignores the necessary efficiency of adhesion contracts.
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).
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.