An adhesion contract (also called a "standard form contract" or a "boilerplate contract") is a contract drafted by one party (usually a business with stronger bargaining power) and signed by another party (usually one with weaker bargaining power, usually a consumer in need of goods or services). The second party typically does not have the power to negotiate or modify the terms of the contract. Adhesion contracts are commonly used for matters involving insurance, leases, deeds, mortgages, automobile purchases, and other forms of consumer credit. While technically, one does not HAVE to sign an adhesion contract, most of us probably don't feel we have any choice. After all, we need to live somewhere, get places. and probably don't want to always carry wads of cash. Considering that contracts are promises that society chooses to enforce, should society enforce adhesion contracts? Why or why not? Should there be limits to the enforcement of such contracts? If so, what should those limits be?

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a Society faces a challenge in enforcing adhesion contracts due to the power imbalan... View the full answer