What is described as a standardized set of agreements offered by one party to another on a 'take it or leave it' basis?

An adhesion contract is characterized as a standardized set of terms offered by one party to another on a "take it or leave it" basis, where one party typically has significantly more power than the other in the negotiation process. This type of contract is usually presented as a pre-drafted agreement with no room for negotiation over the terms, making it essential for the weaker party, generally a consumer, to either accept the terms as they are or forgo the agreement entirely.

The nature of adhesion contracts often leads to scrutiny regarding their enforceability, particularly if the terms are deemed to be overly one-sided or unconscionable. They are common in various industries, including insurance, where the provider drafts the policy terms and the consumer must accept them without modification.

Understanding this concept is crucial, especially in the context of insurance and other industries where such contracts are prevalent, helping individuals recognize their rights and the legal implications associated with these types of agreements.