Contract of Adhesion

Overview #

Contract of Adhesion (a leonine contract, or a take-it-or-leave-it contract) is a contract between two parties, where the terms and conditions of the contract are set by one of the parties, and the other party has little or no ability to negotiate more favorable terms and is thus placed in a "take it or leave it" position.

The proponents of those systems assert the expediency of scale in support of the rigidity of terms, but individuals are left with a situation where economic compulsion of their dependency on the service can undermine their leverage and hence their ability to protect their individual rights. Key aspects of this imbalance as reflected in large-standard contract settings include: [2]

  • Lack of granularity: The less-empowered party MUST accept a totality of trust and liability, rather than a smaller apportionment.
  • Absence of dynamism: The less-empowered party MUST accept the contract in its entirety at the inception of the relationship and can't change the parameters now or in future.
  • No market choice: The less-empowered party is economically compelled to accept an offer due to limits on available alternatives.
  • Inadequate transparency: The less-empowered party does not have the means to verify that the other party is acting as promised.

Statute of Frauds[3]#

The statute of frauds refers to the requirement that certain kinds of contracts be memorialized in a writing, signed by the party to be charged, with sufficient content to evidence the contract

More Information #

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