What does the term 'adhesion' refer to in contract law?

The term 'adhesion' in contract law refers to a type of contract where the terms are predominantly established by one party, leaving the other party with little to no ability to negotiate or alter those terms. This situation often arises in situations involving standardized agreements, such as insurance policies or consumer contracts, where one side typically has greater bargaining power, leading to a "take it or leave it" scenario.

In these contracts, the adhering party essentially accepts the contract terms as they are presented, which can lead to concerns about fairness and the potential for unconscionable terms. The concept of adhesion contracts acknowledges the imbalance in bargaining power where the terms may be presented in a manner that is not easily understood or where the adhering party may feel compelled to accept the contract due to lack of reasonable alternatives.

While the other options touch on various aspects of contracts, they do not capture the essence of adhesion contracts. For example, an agreement that allows for frequent amendments doesn't imply the same imbalance in power. Similarly, negotiable contracts and voidable contracts refer to different dynamics and legal principles regarding the freedom and conditions under which parties can alter agreements. Therefore, understanding adhesion contracts is crucial for recognizing issues of fairness and enforceability in contract law.