Legal Definitions - adhesion contract (contract of adhesion)

An adhesion contract, also known as a contract of adhesion, is a standardized agreement presented by one party to another on a "take-it-or-leave-it" basis, where the party receiving the contract has little to no ability to negotiate the terms. These contracts typically arise when there is a significant imbalance in bargaining power between the parties, with the stronger party drafting the entire agreement. The weaker party must either accept the contract as written or forgo the desired product or service.

Because of this lack of negotiation, courts sometimes scrutinize adhesion contracts to ensure they are not unfairly oppressive or contain terms that a reasonable person would not expect.

• Airline Ticket Purchase

  When you purchase an airline ticket, you are typically presented with a set of terms and conditions that govern your flight, including baggage allowances, cancellation policies, and liability limitations. You, as the passenger, have no opportunity to negotiate these terms with the airline. You either accept the airline's standard contract to buy the ticket or choose not to fly with that airline. This is an adhesion contract because the airline, possessing superior bargaining power, dictates the terms, and the individual consumer must accept them without modification.

• Gym Membership Agreement

  Joining a gym often involves signing a membership agreement that outlines monthly fees, cancellation procedures, rules of conduct, and liability waivers. The gym typically provides a standard form contract, and as a prospective member, you cannot negotiate individual clauses, such as reducing the cancellation fee or altering the terms of the liability waiver. This constitutes an adhesion contract because the gym, as the stronger party, offers a non-negotiable agreement that the individual must accept to gain access to the facilities.

• Terms of Service for a Major Online Streaming Service

  When you sign up for an online streaming service (like a movie or music platform), you are required to agree to its "Terms of Service" or "User Agreement." These documents detail how you can use the service, billing practices, content restrictions, and how disputes will be handled. You cannot propose changes to these terms, such as modifying the subscription price or altering data usage policies. This is an adhesion contract because the streaming service, a powerful entity, presents a standardized agreement that individual users must accept in its entirety to access the service, demonstrating a clear imbalance in bargaining power.