Home Statute of Frauds Learn All About Adhesion Contracts and Unconscionability

Learn All About Adhesion Contracts and Unconscionability

Learn All About Adhesion Contracts and Unconscionability

Despite some controversy over how strictly adhesion contracts should be enforced by the courts, the existence of these contracts serves a crucial societal function. They serve to increase the efficacy of normal commercial interactions. Standard form contracts commonly cover rental car agreements, the tickets which are given out by parking garages or the end user license agreements included in software.
The societal benefit is that these common interactions do not need to be negotiated on an individual basis. Instead, the existence of standard forms can be used quickly and simply by the involved parties. Although the normal requirements of contra proferentem, or “against the proffering party”, act against those using such contracts. This inclination of the courts to issue a judgment against the party issuing the contract is similar to its preference when interpreting contracts under the plain meaning rule to invalidate attempts at alternate interpretations.