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contract of adhesion |
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adhesion contract (contract of adhesion) n. a contract (often a signed form) so imbalanced in favor of one party over the other that there is a strong implication it was not freely bargained. Example: a rich landlord dealing with a poor tenant who has no choice and must accept all terms of a lease, no matter how restrictive or burdensome, since the tenant cannot afford to move. An adhesion contract can give the little guy the opportunity to claim in court that the contract with the big shot is invalid. This doctrine should be used and applied more often, but the same big guy-little guy inequity may apply in the ability to afford a trial or find and pay a resourceful lawyer. (See: contract) |
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By making the same products and services available at a higher price if the customer turns down the arbitration clause, the customer is being given an opportunity to obtain the same products and services without agreeing to arbitration, thereby weakening the argument that the contract was a contract of adhesion. offer of employment), and was not a contract of adhesion. The court further noted that this was not a contract of adhesion, that is, there was no indication that the parties had unequal bargaining power or that the plaintiff had no alternative to hiring MEI. |
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contract of adhesion
