What Does Adhesion Contract Mean?

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What does Adhesion Contract mean? Read on to discover the definition & meaning of the term Adhesion Contract - to help you better understand the language used in insurance policies.

Adhesion Contract

Adhesion Contract

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.

We hope the you have a better understanding of the meaning of Adhesion Contract.

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