What is a contract of adhesion?

A contract of adhesion is a contract between two parties of unequal bargaining power, where one party (usually the stronger party) presents the contract on a "take it or leave it" basis. This type of contract is especially common in consumer transactions, where the consumer is required to adhere to the terms of the contract offered by the other party. In Virginia, the common law governing contract of adhesion is that the contract will be enforced if it is not unconscionable. This means that the terms of the contract must not be so unfairly one-sided that enforcement would be considered unjust. The court considers several factors to determine if a contract of adhesion is unconscionable, such as unfair surprise, oppression or harshness, or a lack of meaningful choice. If the court finds that a contract of adhesion is unconscionable, it will likely not be enforced. If the contract is enforceable, it means that each party must comply with the terms of the agreement- even those terms that may be unfair or otherwise unfavorable to one of the parties. Contracts of adhesion are important for both parties to understand, as they can have significant consequences for both parties. It is important for parties to consider the different factors involved when entering into a contract and to be aware of the balancing of powers between the two parties.

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What is a contract of adhesion?

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