What Is an Adhesion Contract?
An adhesion contract is a standardized agreement. Adhesion contracts are on a ¿take it or leave it¿ basis. If you don¿t agree to the terms of the contract, you cannot acquire the products or services. There is no opportunity for negotiation regarding any terms in the contract. Are Adhesion Contracts Commonly Used?Adhesion contracts are used in a wide variety of different commercial settings because of their efficiency (since adhesion contracts are standardized ¿forms¿). Common types of adhesion contracts include: - Insurance policies ¿ Almost all insurance policies are adhesion contracts. As the insured, you have no power to bargain and you either take the insurance policy or you don¿t.
- Housing ¿ If you attempt to rent an apartment or a house, you will have to sign a lease. The lease is an adhesion contract because the terms are non-negotiable. The same thing goes for many other goods and services, such as buying a car or ordering a computer.
- Tickets ¿ If you go to a baseball game, a cruise, or valet park, most likely there will be small print on the back of the tickets. This is considered an adhesion contract; once you purchase the ticket, you are bound by the terms of the small print ¿contract¿ even if you were unaware it was there.
Are Adhesion Contracts Always Enforceable?Not always. Adhesion contracts are almost always created by the ¿stronger¿ of the two bargaining parties. The stronger party will often manipulate the terms to take full advantage of the situation. As a result, many adhesion contracts can be unfair or unjust. Besides, the language is often difficult to understand. If an adhesion contract is at issue in court, the judge will hold an adhesion contract unenforceable if it is considered unfair or unjust. How Can a Lawyer Help Me?
As stated above, adhesion contracts will not be enforceable if they are considered unfair or unjust. An experienced attorney will be able to guide you through the difficult language of an adhesion contract and inform you of your obligations. |
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