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)

References in periodicals archive ?
41) Usually the consumer is presented with a contract of adhesion by a salesperson.
76) However, if a clause in the arbitration agreement within a contract of adhesion contains a forum selection clause, a court will be severely limited in its ability to invalidate the clause.
If it is expediency and efficiency that the company issuing the contract of adhesion prefers, then it should include an arbitration provision.
If the Supreme Court continues to interpret the FAA in such a broad, preemptive manner and fails to address the policy considerations, legislation may bring about reform by preventing the contracting party from including a class action waiver clause in a contract of adhesion.
Together, these contract ideas can help living constitutionalists explain both why they are terribly anxious about legitimacy in the first instance and why they think fundamental principles of political morality and ethics are always in play when taking to the task of interpreting our constitutional contract of adhesion.
Generally, mere inclusion of the clause in a contract of adhesion will not defeat its enforcement unless the resisting party can show that the clause resulted from the "unfair use of superior power to impose the contract upon the other party" or it was not within the reasonable expectations of that party.
33) The Eighth Circuit found that the agreement was a contract of adhesion because lawyers had drafted it, it was printed in small type, and everyone using the racetrack was required to sign it.
36) One of the best arguments for defeating an arbitration clause in a contract of adhesion is that it is unconscionable.
No one would seriously suggest that free speech rights may be waived merely because of an unread provision in the fine print of a contract of adhesion.
Sound as this principle is, the oppressive contract of adhesion has acquired new life.
When pleading a case against an HMO, attorneys should keep in mind that the HMO contract is a contract of adhesion that deals with life, health, and matters of mental solicitude.