contract of adhesion

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contract of adhesion

A customer signs a contract of adhesion at a car rental counter.

Definition
  1. Noun:
    • A standardized contract: A "contract of adhesion" is a legally binding agreement that is presented by one party to another on a "take it or leave it" basis, with no opportunity for the weaker party to negotiate its terms.
    • An agreement with unequal bargaining power: It is a contract that heavily restricts one party while leaving the other free, typically because it is a standard form printed by the party with greater economic power (e.g., a corporation).
Usage
  • General Use: The term is used in legal and business contexts to describe agreements where the terms are set by one party and accepted by the other without negotiation.
  • Key Characteristics: The defining features are the absence of negotiation and the significant imbalance in bargaining power between the parties.
Examples
  • Noun:
    • The software license agreement was a classic contract of adhesion; users had to click "I Agree" to all terms to install the program.
    • Courts sometimes scrutinize a contract of adhesion for unconscionable clauses that unfairly burden the consumer.
Advanced Usage
  • "To be deemed a contract of adhesion": To be legally classified as such.
    • The insurance policy was deemed a contract of adhesion because the policyholder could not alter any of its provisions.
  • "Enforceability of a contract of adhesion": Refers to whether such a contract, or specific clauses within it, will be upheld in court.
    • The enforceability of a contract of adhesion often depends on the clarity and fairness of its terms.
Variants and Related Words
  • Adhesion contract (n): A synonymous term for "contract of adhesion."
    • The lease was an adhesion contract with many one-sided clauses.
  • Standard form contract (n): A broader term for any pre-written contract; all contracts of adhesion are standard form contracts, but not all standard form contracts are necessarily adhesion contracts if negotiation is possible.
  • Boilerplate (n): Refers to the standardized, often non-negotiable language used in such contracts.
Synonyms
  • Take-it-or-leave-it contract: A non-legal synonym emphasizing the lack of choice.
  • Non-negotiable agreement: Highlights the inability to bargain over terms.
  • Standard form contract: A more neutral term for a pre-drafted agreement.
Related Phrases
  • "To present a contract of adhesion": To offer such a non-negotiable agreement.
    • The company presents a contract of adhesion to all new customers.
  • "Contained in a contract of adhesion": Describes a clause or term that is part of such an agreement.
    • The arbitration clause contained in the contract of adhesion was challenged in court.
Related Idioms & Concepts
  • "Fine print": The often hard-to-read details in a contract, which are critically important in contracts of adhesion.
    • He didn't read the fine print in the contract of adhesion and was surprised by the fees.
  • "Unequal bargaining power": The core legal concept underlying the identification and potential unenforceability of a contract of adhesion.
contract of adhesion

A customer signs a contract of adhesion at a car rental counter.

Noun
  1. a contract that heavily restricts one party while leaving the other free (as some standard form printed contracts); implies inequality in bargaining power

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