Legal Definitions - standard-form contract

A standard-form contract is a pre-written agreement where one party (often a business) sets most or all of the terms, and the other party has little to no opportunity to negotiate those terms. It is typically presented on a "take it or leave it" basis and is used repeatedly by the drafting party for numerous transactions. These contracts are designed for efficiency and consistency, but they can sometimes lead to an imbalance in bargaining power.

Here are some examples to illustrate this concept:

• Online Software License Agreement: When you download and install a new software application on your computer, you are almost always prompted to click "I Agree" to a set of Terms and Conditions or an End-User License Agreement (EULA). You cannot customize these terms; your only choice is to accept them to use the software or decline them and not use it. This is a classic example of a standard-form contract because the software company drafts the terms, and every user must accept the same pre-set conditions.

• Gym Membership Agreement: When you sign up for a gym membership, you are typically given a pre-printed contract outlining the monthly fees, cancellation policy, rules of conduct, and liability waivers. The gym does not negotiate individual clauses with each new member; instead, all members agree to the same standardized terms. This demonstrates a standard-form contract where the gym provides a uniform agreement to all its customers.

• Airline Ticket Purchase: When you buy an airline ticket, you implicitly agree to the airline's Conditions of Carriage, which are extensive, pre-defined terms covering everything from baggage allowances and flight delays to cancellation policies and passenger rights. You don't negotiate the specifics of these conditions when you purchase your ticket; you accept the airline's standard terms as part of the transaction. This illustrates how a standard-form contract facilitates high-volume transactions with consistent rules for all customers.