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What Is an Adhesion Contract?

An adhesion contract is a common contract that many of us have encountered. Examples of these are a lease agreement for renting an apartment, a standard insurance policy as well as any contract a person has entered into with a company providing professional service.

In cases when an adhesion contract is required, the two parties involved are referred to as the stronger party and weaker party. The weaker party is the person or consumer that needs a product or service. The stronger party is normally the company or business that sells the products and provides the service.

When the need for a product or service is very strong, consumers would usually just scan the agreement or in some instances, would just sign it right away. This type of agreement is not in any way considered to be bias because the consumer or the weaker party continues to benefit from the adhesion contract. As long as the terms and conditions are followed by the stronger party, there’s bound to be less problems moving forward.

On the other hand, if the stronger party fails to fulfill its obligations and violates the terms of the contract, the weaker party can file a lawsuit. The consumer has two options – use a professional arbiter to settle the dispute or file a case directly in court. Unfortunately, the stronger party or companies may include special clauses in the adhesion contract which protect their interest should a consumer file a complaint against them. It is for this reason that consumers need to read and understand carefully the terms of a contract before signing it to avoid future problems.

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