Adhesion Contract

In one sentence

A take-it-or-leave-it agreement where one party has much more power to set the terms.

Plain English

An adhesion contract is one where you have little to no ability to negotiate. A company presents you with a contract and says 'sign this or we won't do business with you'—you can't change the terms. Insurance policies, cell phone plans, and software licenses are common examples. Courts scrutinize these carefully because the weaker party had no real choice.

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Example

When you open a bank account, the bank gives you a lengthy agreement with all the rules already written. You can't negotiate the interest rates, fees, or terms—you either accept them as written or take your business elsewhere.

Used in a sentence

“The court found the adhesion contract unconscionable because the consumer had no opportunity to negotiate any of the terms.”

Related terms

Standard Form Contract

A pre-written agreement with uniform terms used repeatedly for similar transactions.

Terms and Conditions

The specific rules and requirements that govern a contract or agreement.

Entire Agreement Clause

A contract provision stating that the written agreement is the complete and final deal between parties.

Implied Covenant of Good Faith and Fair Dealing

An unwritten promise in every contract that parties will act honestly and fairly toward each other.

Unenforceable

A contract or clause that a court will not force either party to follow, even though it appears valid.

Doctrine of Mistake

A contract may be voided or reformed when both parties made a fundamental error about key facts.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.