Simple English definitions for legal terms
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An adhesion contract is a type of contract where one party has much more power than the other party. The weaker party cannot change the terms of the contract because they have no bargaining power. Adhesion contracts are usually standard forms that the stronger party offers to consumers. They are used for things like insurance, leases, mortgages, and car purchases. Consumers often have no choice but to accept the contract as it is. Courts may look at whether the contract is fair and whether the terms are clear. There are also electronic adhesion contracts, which are contracts that people agree to online. Some types of electronic adhesion contracts are enforceable, while others are not.
An adhesion contract is a type of contract where one party has significantly more bargaining power than the other party. The weaker party is unable to negotiate the terms of the contract and must accept the contract as it is presented. Adhesion contracts are usually in the form of a standardized contract that is prepared by the stronger party and offered to consumers of goods and services. Examples of adhesion contracts include insurance policies, leases, deeds, mortgages, automobile purchases, and other forms of consumer credit.
Consumers often have no choice but to accept the terms of an adhesion contract, as they cannot obtain the desired product or service without agreeing to the contract. Courts may use the doctrine of reasonable expectations to determine whether to strike down an adhesion contract. This doctrine states that a party who adheres to the other party's standard terms does not assent to the terms if the other party has reason to believe that the adhering party would not have accepted the agreement if they had known that the agreement contained the particular term.
There are three types of electronic adhesion contracts: browse-wrap, click-wrap, and sign-in-wrap. Browse-wrap contracts require consumers to click through multiple hyperlinks to read and agree to the terms and conditions. Courts usually do not enforce browse-wrap contracts because of the procedural unconscionability of buried terms. Click-wrap contracts require that consumers click "I agree" by means of an immediately available pop-up box. Sign-in-wrap contracts include a hyperlink, often labeled as "Terms of Service" or "Terms and Conditions," that is located by a sign-up button. Sign-in-wrap contracts require that users electronically accept the terms by clicking "I accept" or "I agree" as the last step of the sign-up process before allowing consumers to use their products or services.
For example, if a person wants to use a social media platform, they may be required to accept the terms and conditions of the platform through a sign-in-wrap contract. The person must click "I accept" before they can use the platform. This contract is an adhesion contract because the person cannot negotiate the terms of the contract and must accept the terms as presented.