Multiple choice

Why is insurance contract an adhesion contract?

  1. Insurance company has all the bargaining power.

  2. Client has also great bargaining power.

  3. Both 1 and 2

  4. None of these
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A Correct answer
Explanation

Adhesion contract is a legally binding agreement between two parties to do a certain thing, in which one side has all the bargaining power and uses it to write the contract primarily to his or her advantage.

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