What is a contract of adhesion?
A contract of adhesion is a type of contract used in Texas. It is a legally binding agreement between two parties, but is usually one-sided in favor of the party who drafted the contract. In Texas, a contract of adhesion is typically used in consumer transactions. This type of contract is usually not negotiable and the weaker party is expected to accept or reject the contract as written. A contract of adhesion typically has a standard, pre-printed form that the weaker party must accept. The terms are often vague and the weaker party may not understand the contractual obligations they are agreeing to. The stronger party is usually the one that drafted the contract. This party will have more control over the content of the contract and will typically include provisions that favor them. The main issue associated with a contract of adhesion is that it is usually unfavorable to the weaker party. However, courts do acknowledge them as valid contracts as long as it is clear that the weaker party agreed to the terms voluntarily. A well written contract of adhesion should include provisions that make the contract understandable to the weaker party. This will help protect both parties and ensure that the contract is legally valid.
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