What characterizes an adhesion contract?

An adhesion contract is typically characterized by the fact that one party, often the stronger party, drafts the contract in its entirety without any negotiation from the other party. This means that the weaker party has little to no influence over the terms and conditions of the agreement. Such contracts are prevalent in scenarios where standard-form contracts are used, like in insurance policies or rental agreements.

The nature of an adhesion contract highlights the imbalance of bargaining power, as the party that drafts the contract often holds a significant advantage. The other party can either accept the terms as presented or reject the contract entirely, but they usually do not have the opportunity to negotiate specific terms.

In contrast, the other options do not accurately represent the nature of adhesion contracts. For instance, a hallmark of these contracts is that both parties do not negotiate the terms equally; rather, it is one-sided. While adhesion contracts can indeed be enforced in court if they meet legal criteria, enforcement itself does not define them as adhesion contracts. Lastly, while mutual consent might be necessary for any changes to an existing contract, the defining characteristic of an adhesion contract lies in the lack of negotiation during its initial creation.