Home > Glossary

Adhesion Contract

Adhesion Contract

Definition

A contract (also known as a contract of adhesion) between two parties, where the terms and conditions are drafted by the party with superior bargaining power (typically a business) and the other party (typically a consumer) has little or no ability to negotiate more favorable terms, and, as a result, the consumer is placed in a "take-it-or-leave it" position. The courts carefully scrutinize adhesion contracts and will sometimes void certain provisions on the basis that the provisions are unconscionable or the product of unequal bargaining power.

Related Terms

Related Products

Commercial Liability Insurance
Insurance Law Essentials
The Additional Insured Book

Navigation

Social Media

User ID: Subscriber Status:Free