Contracts of adhesion are agreements between two parties where one party has significantly more bargaining power than the other. These types of contracts are usually one-sided and drafted by the party with the most power, leaving the other party with no choice but to accept the terms. Contracts of adhesion are usually used in cases where goods or services are being sold, such as credit cards, loans, or cell phone contracts.
The use of contracts of adhesion has become increasingly common in recent years, and they have been criticized for being unfair to the weaker party in the agreement. This is because contracts of adhesion are often presented on a “take it or leave it” basis, leaving the other party with no room for negotiation.
One of the main problems with contracts of adhesion is that they are often induced by duress. Duress is a legal term that refers to the use of force or coercion to make someone do something against their will. Contracts of adhesion are often presented to the weaker party in a way that makes them feel like they have no other choice but to accept the terms.
For example, imagine you are buying a new car and the salesperson presents you with a contract of adhesion for the financing of the car. The terms of the contract are one-sided and heavily favor the financing company. However, you need the car and have limited options for financing, so you feel pressured to sign the contract.
In this case, the contract of adhesion was induced by duress because you were coerced into signing the contract because of your limited options. This type of contract is unfair and should be avoided whenever possible.
Overall, contracts of adhesion are problematic because they are often induced by duress. It is important to be aware of these types of contracts and to avoid them whenever possible. If you do find yourself in a situation where you are presented with a contract of adhesion, it is important to carefully review the terms and negotiate if possible.