Contract of adhesion on the Web:

• adhesion contract: a contract that heavily restricts one party while leaving the
other free (as some standard form printed contracts); implies inequality in
bargaining power
wordnetweb.princeton.edu/perl/webwn
• A contract drafted by one party and offered with little opportunity for the other
party to bargain or alter the provisions. Contracts of adhesion generally
contain detailed standard terms and conditions, written in legal or business
language difficult for ordinary consumers to understand. ...
www.eagleinsurance.com.au/glossary.php

• Adhesion Contract

A type of contract, a legally binding agreement between two parties to do a certain thing, in which one
side has all the bargaining power and uses it to write the contract primarily to his or her advantage.
An example of an adhesion contract is a standardized contract form that offers goods or services to
consumers on essentially a "take it or leave it" basis without giving consumers realistic opportunities to
negotiate terms that would benefit their interests. When this occurs, the consumer cannot obtain the
desired product or service unless he or she acquiesces to the form contract.
There is nothing unenforceable or even wrong about adhesion contracts. In fact, most businesses would
never conclude their volume of transactions if it were necessary to negotiate all the terms of every
Consumer Credit contract. Insurance contracts and residential leases are other kinds of adhesion
contracts. This does not mean, however, that all adhesion contracts are valid. Many adhesion contracts
are Unconscionable; they are so unfair to the weaker party that a court will refuse to enforce them. An
example would be severe penalty provisions for failure to pay loan installments promptly that are
physically hidden by small print located in the middle of an obscure paragraph of a lengthy loan
agreement. In such a case a court can find that there is no meeting of the minds of the parties to the
contract and that the weaker party has not accepted the terms of the contract.
contract of adhesion - a contract that heavily restricts one party while leaving the other free (as some
standard form printed contracts); implies inequality in bargaining power

adhesion contract (contract of adhesion) n. a contract (often a signed form) so imbalanced in

favor of one party over the other that there is a strong implication it was not freely bargained. Example: a
rich landlord dealing with a poor tenant who has no choice and must accept all terms of a lease, no matter
how restrictive or burdensome, since the tenant cannot afford to move. An adhesion contract can give the
little guy the opportunity to claim in court that the contract with the big shot is invalid. This doctrine should
be used and applied more often, but the same big guy-little guy inequity may apply in the ability to afford a
trial or find and pay a resourceful lawyer

adhesion contract

Definition
Boilerplate contract, prepared entirely by the party with preponderant bargaining
power, and offered to the weaker party on (in effect) a 'take it or leave it' basis. Most
insurance policies and small business loans, and some contracts of employment
(although legal), are contracts of adhesion because they provide little or no opportunity
to negotiate the terms. If the disadvantaged party finds some provisions unacceptable,
it cannot suggest changes and must do without the loan or service. In case of a
dispute, courts scrutinize such contracts to ensure their terms are not oppressive or
unconscionable, and frequently refuse to enforce the contract. The name comes from
the reality that the stronger party draws up the contract and the weaker party simply
'adheres' to the terms. Also called contract of adhesion.