What is a contract of adhesion?

A contract of adhesion is a contract formed between two parties, where one party (the “adhering” party) has significantly less bargaining power and must agree to the terms of the other party (the “dominant” party) or not enter into the contract at all. In Mississippi, these contracts are often used in consumer transactions, such as when someone purchases a product from a store or signs up for a service. The adhering party is typically presented with a contract that is prepared by the dominant party in advance and cannot be negotiated. Contracts of adhesion are enforceable in Mississippi and throughout the United States, but the court will typically examine the terms of the contract closely to ensure that the agreement is fair and reasonable. When determining if a contract of adhesion is fair, courts will look at factors such as whether the agreement was clearly explained to the adhering party, whether there were any hidden or unfair terms included, and whether the agreement was one of necessity. Since contracts of adhesion often favor the dominant party, it’s important to review the terms of the contract carefully and get advice from an attorney if necessary before signing anything. By understanding the agreement and all of the terms included, consumers can protect their rights and make sure that they are entering into fair and reasonable contracts.

Related FAQs

What is a disclaimer?
What is the formalities requirement?
What is the effect of a breach of contract?
What is a mutual rescission of a contract?
What is a warranty in a contract?
What is a contract of service?
What is the common law?
What is a term in a contract?
What is a contractual waiver?
What is acceptance of a contract?

Related Blog Posts

What Every Business Should Know About Contract Law - July 31, 2023
Understanding Contract Enforceability - Key Considerations - August 7, 2023
Drafting an Enforceable Contract: Best Practices - August 14, 2023
Creating an Effective Contract: Tips and Tools - August 21, 2023
Negotiation Strategies for Contract Law - August 28, 2023