What is a contract of adhesion?

A contract of adhesion is a type of contract that is created when one party offers a standardized contract to another party, and the other party has little or no bargaining power. This type of contract is common in North Dakota and many other states. When a contract of adhesion is presented to someone, they usually have little or no control over the terms and they must either reject the entire contract or accept it as it is written. If they accept it, they are often bound to the contract just as if they had written these terms themselves. The terms of a contract of adhesion are often presented in a way that is beneficial to the party offering the contract and less beneficial to the party receiving it. This could include one party paying an excessive amount of money for a service or waiving rights they would otherwise have under a different contract. In general, contracts of adhesion are difficult to enforce due to the lack of meaningful negotiations between the parties. Even if the contract is accepted, the lack of negotiated terms could make it vulnerable to legal challenge if one of the parties attempts to have it enforced. In North Dakota, many disputes concerning contracts of adhesion are resolved through arbitration or the court system, depending on the type of contract.

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What is a contract of adhesion?

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