What is a contract of adhesion?

A contract of adhesion is a type of contract that is one-sided and not open to negotiation. It is a standardized contract created by one party, such as a company or organization, and offered to the consumer on a “take it or leave it” basis. This type of contract is typically found in consumer contracts, such as the terms of service of a website or the terms of a loan agreement. It is called a contract of adhesion because the greater bargaining power of one party in the contract is comparable to an adhesive binding the two parties together. Typically, the party creating the contract does not allow the other party to make changes or to negotiate the terms. The party who has to sign the contract has no choice but to “adhere” to the terms of the contract. Contracts of adhesion are widely used in Florida and are subject to certain rules and regulations. Generally, consumers have the right to a certain amount of protection from the unfair language contained in a contract of adhesion. A court can invalidate certain clauses that are oppressive or otherwise unconscionable in order to ensure that the agreement is fair to all parties.

Related FAQs

What is the doctrine of frustration in a contract?
What is a contract of service?
What is a rescission of a contract?
What is a mutatis mutandis clause?
What is a third-party beneficiary?
What is an implied covenant of good faith?
What is the parol evidence rule and why is it important?
What is the effect of a breach of contract?
What is a creditors’ rights clause?
What is a breach of the implied covenant of good faith?

What is a contract of adhesion?

Related FAQs

Related Blog Posts