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Publication date: 18.04.2024
I am studying in the third year of the State University of Economics and Technology.I specialize in contractual, economic and corporate law, in particular, I provide consultations and write articles.
A contract of adhesion is a type of contract entered into between two parties, one of whom has a significant advantage in the terms of the agreement, while the other party accepts the terms of the contract without the possibility of negotiation or change.
The main features of the adhesion agreement include:
Standardized terms: The terms of affiliation are usually standardized and prepared by one of the parties that has the upper hand in the transaction, such as a large company or organization.
Unilateral Initiative: The terms of accession are not subject to negotiation between the parties. One party offers the other party terms of the contract, which the latter can accept or reject.
Lack of equality: Usually one party has a significant advantage in the terms of the agreement, while the other party, entering into the agreement, has less power to influence the terms.
Limited Choice: A person joining a contract has a limited choice of terms and can usually only accept or reject those terms.
Dominant role of one party: The terms of an adhesion agreement are often formulated in such a way that it favors the party initiating it, providing it with broad rights and limiting the rights of the other party.
Examples of accession agreements may be terms of use of software, terms of service for Internet providers, and terms of use of social networks. In many jurisdictions, the law may impose certain restrictions on the terms of the adhesion agreement to protect the interests of the weaker party.
Ukrainian legislation does not provide a specific definition of the types of adhesion agreements, however, there are different types of such agreements that can arise in different areas of life. Here are some of them:
Insurance Policy: An insurance policy can be a form of contract of adhesion. The policyholder accepts the conditions proposed by the insurer without the possibility of negotiation.
Banking Agreements: Terms of use of banking services, such as agreements on opening a bank account, credit agreements, etc., can also be a form of adhesion agreement.
Agreements with mobile operators (Mobile Service Agreements): The terms of use of mobile communication services accepted by the subscriber can also serve as an example of an accession agreement.
Procedure for concluding an agreement of adhesion:
The development of an agreement is drawn up according to a certain scheme, although it may differ depending on the specific situation and type of agreement. Here are the general steps you can expect when entering into such an agreement:
Offer: One party makes a public offer (offer) to another party or group of persons.
Acceptance of an Offer: The other party or person accepts the offer and agrees to the terms and conditions contained therein. This can be done by acceptance (acceptance of the offer without any changes).
Formalization of the transaction: Usually, after the acceptance of the offer, the transaction is brought to formality by signing the relevant document or deed of acceptance of the terms.
Time to Consider: Sometimes parties have the right to consider the terms of an offer before accepting them. In some cases, an offer may have a time limit during which the potential recipient has the right to accept or reject the offer.
Fulfillment of Conditions: Once a contract is entered into, the parties are bound by the terms and conditions set out in the document and must fulfill their obligations in accordance with the agreement.
Conclusion of an agreement: An agreement may be terminated in accordance with its terms or under other circumstances (for example, with the consent of both parties, violation of the terms, expiration of a term, etc.).
It is important to note that the adhesion agreement must usually be formulated in a way that is clear and accessible to the recipient of the proposal. This is important because the receiving party has no ability to influence the terms of the contract and accepts them as they are.
Development of a contract by a lawyer:
Consulting a lawyer before concluding an agreement will help to avoid certain conflicts and misunderstandings between the parties in the future, because the correctly formed content of the agreement and its compliance with legal requirements is the key to urgent legal relations. The assistance of a lawyer may be required at any stage of concluding an agreement, from checking the counterparty, developing a draft agreement, ending with its signing, and the lawyer will also prepare all the documents necessary for this. So, the development of agreements by a lawyer is a certain guarantee that the contract will be concluded in accordance with all legal requirements.
