Saturday, November 20, 2010

Legal Term of the Day

adhesion contract (contract of adhesion)
A contract that so strongly favors one party or so unfairly restricts another, that it creates a presumption that one party had no choice when entering into it. If a court determines that the contract is overly unfair, it may refuse to enforce the agreement against the disadvantaged party. An example of a contract of adhesion might be a form contract provided by an unethical leasing company. Adhesion contracts are often evidenced by the comparative strength of the parties-- for example, a giant corporation as compared to an average citizen.

In a very few situations dairy farmers have no contracts with their milk handler. In places where there is competition, the contract in often month-to-month. In the Northeast and elsewhere the contracts are for a year.

So, I suspect that many of the one year contracts are actual "adhesion contracts." The problem with adhesion contracts is the person on the bottom often (usually) has no resources to fight a case in court.

1 comment:

  1. if they even qualify as a legal contract at all. some of these 'contracts' aren't worth the paper they are copied onto. the handlers use them along with the threat of legal action to keep the situation in thier favor. but when push comes to shove the threats are as empty as the promises of over-market premiums.