Multiple choice

Assertion (A): Law of contract recently is 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 correct, but (R) is wrong.

  2. (A) is wrong, but (R) is correct.

  3. (A) and (R) are both correct and (R) is the correct explanation of (A).

  4. (A) and (R) are both correct, but (R) is not the correct explanation of (A).

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A contract of adhesion refers to a contract drafted by one party in a position of power, leaving the weaker party to “take it or leave it.” Adhesion contracts are generally created by businesses providing goods or services in which the customer must either sign the boilerplate contract or seek services elsewhere.