A contract of adhesion is a type of contract used in California that is drafted by one party and presented to another for acceptance on a "take it or leave it" basis. In other words, the agreement is offered on a one-way basis without any opportunity for negotiation. This type of contract is commonly found in consumer contracts, such as those for purchasing cell phone service, insurance policies, and rent-to-own agreements. A contract of adhesion is often seen as unfair because of the unequal bargaining power between the parties involved. As the contract is drafted by only one party, the other party typically does not have the opportunity to bargain over any of the terms. This means that the party presenting the contract will have more power and control over the terms of the agreement. In California, the courts recognize that contracts of adhesion can be unfair to the weaker party and will closely examine the contract to ensure that it is reasonable and not oppressive. The courts have held that unconscionable clauses in a contract of adhesion can be struck down, as they can be seen as unfairly disadvantaging the weaker party. In some cases, the entire contract may be found to be invalid.
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