Which type of contract allows for a non-negotiable agreement?

A contract of adhesion is characterized by its non-negotiable nature, meaning that the terms are set by one party, typically the stronger party, and the other party must accept those terms as is, without the opportunity for negotiation. This type of contract often appears in contexts where one party has significantly more power or leverage, such as in insurance policies or service agreements.

In a contract of adhesion, the party that creates the contract holds most, if not all, of the bargaining power, which results in the other party having little choice but to agree to the set terms if they wish to enter into the agreement. This is common in standardized forms used by insurers, where the language and conditions of the policy are not subject to modification by the insured.

The other types of contracts listed do not share this characteristic. For instance, a unilateral contract involves one party making a promise in exchange for the act of another party, thereby creating an agreement dependent on performance rather than a balanced negotiation between both parties. A standard contract may allow for negotiation on certain terms, while a mutual contract explicitly indicates that both parties have agreed to the terms and conditions, often reflecting a more balanced negotiation process.