Adhesion contract
Certified Financial Planner glossary · Certified Financial Planner
Definition
A contract drafted by one party and offered without negotiation; ambiguities are construed against the drafter.
Adhesion contract in plain English
You hand a client a 40-page disability policy and there is no redline session: sign or walk. That take-it-or-leave-it deal is an adhesion contract, drafted by one party and offered without negotiation. Ambiguities are construed against the drafter, which often helps the insured on close calls. Pair this with contra proferentem on insurance stems. If the vignette stresses unequal bargaining power and unread fine print, adhesion is the doctrine in play.
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