Multiple choice

Assertion (A): Law of contract recently facing a problem due to frequent use of contract of Adhesion. Reason (R): One party to contract has no choice to negotiate but to accept it.

  1. (A) is right but (R) is wrong

  2. (A) is wrong but (R) is right

  3. (A) and (R) both right and (R) is right explanation of (A)

  4. (A) and (R) both right but (R) is not right explanation of (A)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Contracts of adhesion (standard form contracts) are indeed a contemporary problem in contract law because one party has no choice but to accept them on a 'take it or leave it' basis - there is no negotiation. Both Assertion (A) and Reason (R) are correct, and (R) correctly explains (A) - the lack of negotiation opportunity is precisely why adhesion contracts present challenges. The principle concern is unequal bargaining power and potential unfair terms that consumers must accept to obtain essential services.

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