Which of the following is true about an adhesion contract?

An adhesion contract is defined by its characteristics, particularly that it is drafted by one party and presented to the other party on a take-it-or-leave-it basis. Therefore, in this type of contract, only one party truly dictates the terms, leaving the other party with little to no ability to negotiate or modify those terms. This power dynamic reflects the essence of adhesion contracts where the terms are set by one party, often a seller or provider, and the other party, typically a consumer, has to accept them as they are or forgo the contract entirely.

The concept of adhesion contracts is significant because it highlights potential imbalances in negotiation power and can lead to scrutiny in terms of fairness and enforceability in legal situations. Courts often look closely at adhesion contracts to ensure they do not impose unjust terms on the weaker party. Understanding this, one can see the rationale behind option C being the correct choice regarding the nature of adhesion contracts.