What does the application of contract of adhesion mean?

A contract of adhesion refers to a standardized contract drafted by one party, typically a business with stronger bargaining power, and presented to the other party, usually a consumer, on a "take it or leave it" basis. This means that the consumer has little to no ability to negotiate the terms of the contract and must either accept the terms as they are or not enter into the contract at all.

Key Characteristics:

1. Standardized Terms: The terms are pre-drafted and not subject to negotiation.
2. Imbalance of Power: One party has significantly more power in setting the terms.
3. Lack of Negotiation: The weaker party must accept the terms without modification.

Implications:

• Consumer Protection: Courts may scrutinize these contracts more closely to ensure fairness and prevent exploitation.
• Enforceability: Certain clauses may be deemed unenforceable if they are found to be unconscionable or overly one-sided.

In summary, a contract of adhesion is a non-negotiable agreement imposed by a stronger party on a weaker party, often leading to legal scrutiny to protect the interests of the latter.