Question

Post the definition of an adhesion contract and an example of how dry cleaners or movie theater might have an adhesion contract with the customers.

Answer 1

An adhesion contract is defined as the type contract in which the stronger party dictates the terms and is presented to the other party on a take-it-or-leave-it basis. They are written in standard forms and the adhering parties do not get the opportunity to negotiate contract terms.

When we consider the adhesion contracts entered by dry cleaners, they use standard terms to limit their liability against certain damages.

For eg: "We are not responsible for color fading, shrinkage of materials, buckles, beads, and buttons."

Here the customers will have to accept the term if they want to avail of the dry cleaning service and are not allowed to negotiate the terms.

Similarly, in movie contracts also, we can see many standard terms that limit customer freedom and limit the theater owner's liabilities.

For eg: “External food not permitted inside the theater”.

Hence customers are required to buy the food available in the theater and cannot negotiate the term while buying a movie ticket.

In both cases, the contract is presented to the customers on a take-it-or-leave-it basis and constitute adhesion contracts.