A contract where one party writes the terms without input from the other is known as what?

Study for the Michigan Surplus Lines Test. Prepare with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

A contract where one party writes the terms without input from the other is known as a Contract of Adhesion. This type of contract is often presented on a "take it or leave it" basis, meaning the party that drafted the contract typically holds significantly more power in the negotiation process compared to the other party.

In a Contract of Adhesion, the terms are usually set in advance, and the other party cannot negotiate the terms; they can only accept or reject the contract as a whole. This can be seen in many consumer agreements, where products or services come with standard contracts that the consumer must agree to without any opportunity for modification.

Understanding the concept of a Contract of Adhesion is important because it emphasizes the imbalance of bargaining power and can have implications when disputes arise over terms that one party did not have the opportunity to negotiate. This is particularly relevant in regulatory discussions and consumer protection laws, where the fairness of such contracts can be scrutinized.

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