What type of contract typically lacks negotiation between the involved parties?

A contract of adhesion is a type of contract that typically lacks negotiation between the parties involved. In this scenario, one party presents the terms of the contract on a "take it or leave it" basis, while the other party has little to no ability to negotiate the terms or conditions. This often occurs in situations where a party provides a standardized contract, such as insurance policies or consumer goods agreements, leaving the second party to accept or reject the terms without negotiation.

In such contracts, the essential nature is that one party is at a much greater advantage, typically due to the standardization of terms and lack of bargaining power for the other party. Contracts of adhesion are commonly found in everyday transactions where the service provider or manufacturer establishes the terms, placing the consumer in a position where they must accept the contract as it is written.

Understanding the concept of contracts of adhesion is crucial, particularly in fields like insurance, where consumers often agree to lengthy and complex agreements without negotiating terms, potentially impacting their rights and obligations under the contract.