Definition: An Adhesion Contract is a contract where one party has more power than the other in composing and drafting the contract. An insurance policy is an adhesion contract because the insurance agent and company have the power in composing and drafting the contract.
Examples: When Jamie decided to purchase an insurance policy, she made sure she took the time to read it carefully because she knew it was an adhesion contract, a contract in which her insurance agent and company wrote all the policy information and rules.
