What characterizes an adhesion contract?

An adhesion contract is characterized by a unilateral creation that often lacks negotiation. This type of contract is typically drafted by one party, usually the party that has more power in the relationship, and presented to the other party on a "take it or leave it" basis. The weaker party generally has little to no ability to negotiate the terms of the contract, which creates a significant imbalance in bargaining power.

This characteristic is critical because it highlights the nature of adhesion contracts, which can lead to issues such as unconscionability if the terms are excessively unfair to the weaker party. Consequently, the defining feature of an adhesion contract is not the mutual agreement or negotiation aspect, but rather the unilateral approach to its formation.

In contrast, mutual agreement and negotiation are key elements of many contracts, which would not apply in scenarios involving adhesion contracts. Specific performance, while a possible legal remedy in contract law, is not a defining characteristic of adhesion contracts specifically; it applies broadly to many different types of agreements. Additionally, adhesion contracts can be written or verbal, but they are most commonly in written form due to their nature; thus, stating that they are only verbal does not accurately represent them.