contract of adhesion

Contracts of adhesion are agreements where one party, typically a large corporation or utility, sets the terms and conditions, and the other party, with significantly less bargaining power, can only accept or reject them. These are common in areas like transportation, utilities, and consumer services. While traditional contract law assumes equal negotiation, adhesion contracts reflect economic realities where standardized agreements are necessary for efficiency. Legal systems often interpret ambiguities in these contracts against the drafting party to ensure fairness and protect the weaker party, balancing the need for standardized agreements with individual rights.12