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Simple English definitions for legal terms

adhesory contract

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A quick definition of adhesory contract:

An adhesory contract is a type of contract that is written by one party and presented to the other party on a "take it or leave it" basis. The second party has little to no bargaining power and must either accept the terms or walk away from the deal. These contracts are often used in situations where one party has significantly more power or resources than the other. Examples include contracts for cell phone service or software licenses.

A more thorough explanation:

An adhesory contract is a type of contract that is typically offered on a "take it or leave it" basis, where one party has significantly more bargaining power than the other. These contracts are often used in consumer transactions, such as when you sign a contract with a cell phone provider or agree to the terms and conditions of a website.

Adhesory contracts are also known as adhesion contracts or standard form contracts. They are called "adhesory" because the terms of the contract are stuck to the party with less bargaining power, who has little to no ability to negotiate the terms.

For example, when you sign up for a new credit card, you are often presented with a lengthy contract that outlines the terms and conditions of the card. You may not have the ability to negotiate any of the terms, such as the interest rate or annual fee, and must either accept the terms or not get the card.

Another example is when you download a new software program and are presented with a pop-up window that asks you to agree to the terms and conditions. You may not have the ability to negotiate any of the terms, such as the license agreement or privacy policy, and must either accept the terms or not use the software.

Overall, adhesory contracts are often seen as unfair because one party has significantly more bargaining power than the other. However, they are still legally binding as long as they meet the requirements of a valid contract.

adhesionary contract | adhibere

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