Showing posts with label Control. Show all posts
Showing posts with label Control. Show all posts

Saturday, November 20, 2010

Legal Term of the Day

http://www.nolo.com/dictionary/adhesion-contract-(contract-of-adhesion)-term.html

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.