Mabel, an 85-year-old widow who is in poor health, signs a contract with the only nursing home in Anytown (the nearest alternative facility is 75 miles away). The contract obligates Mabel to pay $4,000 per month for the rest of her life and for her
estate to pay the same amount for the period of time that the unit sits empty upon her death. Mabel's daughter believes this agreement amounts to an adhesion contract. What is an adhesion contract? What factors will a court look at in determining whether an adhesion contract exists?
An adhesion contract is a standard form contract prepared by one party and given to the other on a "take it or leave it" basis. Some of the factors the court will consider include the ages of the parties, their respective degrees of expertise, and their mental conditions at the time of the signing of the contract. Here, Mabel was an elderly widow in poor health. The nursing home was the only one in the area, so it probably presented the terms to Mabel as a "take it or leave it" proposition. The nursing home had relatively no risk and there is a gross disparity of interests in the contract.
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