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Contract of Adhesion

A contract drafted by one party and offered with little opportunity for the other party to bargain or alter the provisions. Contracts of adhesion generally contain detailed standard terms and conditions, written in legal or business language difficult for ordinary consumers to understand. Insurance policies can be considered contracts of adhesion because they are drafted by the insurer and offered without providing the insured with any opportunity to make significant alteration. As a result, courts generally rule in favour of an insured where there is an ambiguity in the insurance policy provisions.