A contract of adhesion is a legally binding agreement that is presented to a party on a “take it or leave it” basis. In other words, the party has no bargaining power and must either accept the terms of the contract or forgo the opportunity. This type of contract is commonly used in business arrangements, such as insurance policies, employment agreements, and consumer contracts.

The term “adhesion” refers to the fact that the party accepting the contract has no choice but to adhere to the terms presented. These contracts are usually drafted by the party with the most bargaining power, such as an employer or a service provider, and are presented to the other party on a non-negotiable basis.

Historically, courts have viewed contracts of adhesion with suspicion. This is because the terms of the contract are often one-sided, with the party with the most power able to include terms that are unfavorable to the other party. However, in many cases, these contracts are upheld in court as long as they are not unconscionable, meaning that they do not go against public policy or create an unfair burden on the party accepting the contract.

One example of a contract of adhesion is a software license agreement. When a user downloads software, they are presented with a license agreement that outlines the terms and conditions of use. This agreement is often lengthy and filled with legal jargon, making it difficult for the average person to understand. However, by clicking “I agree,” the user is bound to the terms of the agreement, even if they haven`t had a chance to read it thoroughly.

Another example is a credit card agreement. These contracts are often lengthy and filled with legal jargon, making it difficult for the average person to understand. However, by signing up for a credit card, the user is bound to the terms of the agreement, even if they haven`t had a chance to read it thoroughly.

In order to protect themselves when entering into contracts of adhesion, individuals should take the time to read the agreements carefully before agreeing to the terms. They should also consider seeking legal advice if they have any questions or concerns about the contract.

In conclusion, a contract of adhesion is a binding agreement presented on a take-it-or-leave-it basis. While these contracts have been viewed with suspicion in the past, they are often upheld in court as long as they are not unconscionable. Individuals should take the time to read these contracts carefully and seek legal advice if they have any questions or concerns.