Question

The legal distinction between a contract of adhesion and an unconscionable contract is that the law enforces contracts of adhesion despite unequal bargaining power between the parties True or False

Business Law

Answer 1

Solution-

The legal distinction between a contract of adhesion and an unconscionable contract is that the law enforces contracts of adhesion despite unequal bargaining power between the parties.

This statement is True.

Reason-

Adhesion contract is one that is heavily restrictive of one party while non-restrictive of another, suggesting that there was no or unequal bargaining. E.g. a standard form contract prepared by one party and submitted to the other on a “take it or leave it” basis.