What is a contract of adhesion?

A contract of adhesion is a contract that is one-sided, meaning that only one party has the ability to negotiate terms. This type of contract is also known as a “take it or leave it” contract. In Pennsylvania, contracts of adhesion are very common in many industries, such as insurance, real estate, finance and banking, and consumer services. When entering into this type of contract, one party (the one who drafted it) has all the power, while the other party (the one who signs it) is, essentially, powerless. This means that the party who drafted the contract can dictate all of the terms, without consulting the other party. The party who signs the contract is usually stuck with whatever terms the drafter has chosen, and they have little to no room to negotiate. In Pennsylvania, a contract of adhesion must be clear and explicit, and the other party must be aware that they are signing an agreement that they are not able to negotiate or change. Additionally, the person who drafted the contract must ensure that they act fairly and without any deception. If any of these requirements are not met, the contract may be deemed to be invalid. It is important to consult with a legal professional prior to signing any contract of adhesion.

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What is a contract of adhesion?

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