A contract of adhesion is a standardized contract between two parties, often between an individual and a business. It is a contract where only one party, usually the business, has the bargaining power and creates the terms of the contract. Contracts of adhesion are often one-sided, with no room for negotiation. Due to this, it has been held by courts that contracts of adhesion are unenforceable.
Modern Examples of Contracts of Adhesion
Contracts of adhesion are all around us, from terms and conditions we accept for our phones and cable bills to the fine print in the contracts we sign to purchase cars. Business contracts containing fees and fees for services are also potential contracts of adhesion. When you buy a movie ticket, sign up for a gym membership, or apply for a credit card, it’s likely that you are entering into a contract of adhesion.
The Legal Implications of Contracts of Adhesion
Contracts of adhesion are often deemed to be overly one-sided and unfair, as the terms are dictated by one of the parties and offer no opportunity for negotiation. Therefore, they are viewed skeptically by courts of law. The courts may deem some parts of the contract to be unenforceable, such as a waiver of liability, if it goes against the public interest. A court may also refuse to enforce terms of a contract of adhesion if it finds that an unreasonable amount of power was given to one of the parties.
Conclusion
Contracts of adhesion are a common occurrence, and can be found in many different types of transactions. As the terms of a contract of adhesion are often seen as being one-sided and unfair, there may be legal implications to consider when entering into such an agreement.