Contract Questions and Answers

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What is an adhesion contract?

An Adhesion Contract is a standardized contract form offered to consumers for goods and services on essentially a "take it or leave it" basis. A typical example of an Adhesion Contract is an insurance policy. The Adhesion Contract rarely affords the consumer any realistic opportunity to bargain for special provisions under the contract. The conditions of the Adhesion Contract are generally such that the consumer cannot obtain a desired product or service unless the consumer acquiesces in the form of a contract which is presented. A distinctive feature of the Adhesion Contract is that the weaker party has no realistic choice as to its terms. The trend by the courts is to relieve parties from any unfair conditions imposed by the Adhesion Contract since the court recognizes that these Adhesion Contracts are not the result of a traditionally bargained position.