Which statement describes an adhesion contract?

Which statement describes an adhesion contract?

• A. The stronger party writes the terms and the weaker party must accept.
• B. Terms are negotiated by both parties.
• C. The contract is always voidable.
• D. There is no offer and acceptance required.

Answer: (A)

Adhesion contracts are standard form agreements created by the party with greater bargaining power, and the other party is expected to accept the terms as presented with little or no room to negotiate. The statement that the stronger party writes the terms and the weaker party must accept captures this take-it-or-leave-it nature, which is the defining feature of adhesion contracts. In these contracts, there is still an offer and acceptance—often acceptance comes by signing or continuing with the agreement—so it’s not about lacking an offer or acceptance. This differs from negotiated contracts, where terms are discussed and modified by both sides. An adhesion contract isn’t automatically voided; it can be enforceable, though terms may be challenged if they are unconscionable or illegal.

Adhesion contracts are standard form agreements created by the party with greater bargaining power, and the other party is expected to accept the terms as presented with little or no room to negotiate. The statement that the stronger party writes the terms and the weaker party must accept captures this take-it-or-leave-it nature, which is the defining feature of adhesion contracts. In these contracts, there is still an offer and acceptance—often acceptance comes by signing or continuing with the agreement—so it’s not about lacking an offer or acceptance. This differs from negotiated contracts, where terms are discussed and modified by both sides. An adhesion contract isn’t automatically voided; it can be enforceable, though terms may be challenged if they are unconscionable or illegal.