What type of contract allows only one party to draft the entire agreement?

Prepare for the Idaho Bail Bondsman Insurance License Exam with our comprehensive quiz. Master key topics with multiple-choice questions and detailed explanations. Get set for success!

The correct answer is adhesion. An adhesion contract is a standardized agreement that is drafted by one party, typically a business or service provider, which offers it to another party on a "take it or leave it" basis. This type of contract is characterized by its imbalanced bargaining power, where the party that drafts the agreement has much more control over the terms, while the other party has little to no opportunity to negotiate its terms.

In the context of bail bonds, understanding adhesion contracts is critical since these agreements often detail the responsibilities, rights, and obligations of the parties involved—primarily protecting the interests of the bail bondsman who creates the contract. Recognizing the significance of this imbalance can provide insight into consumer protection laws and the potential for unfair practices in contract enforcement.

The other types of contracts listed do not fit this definition: a conditional contract requires certain conditions to be met before it is enforceable, an executable contract refers to an agreement that is capable of being executed or completed, and a bilateral contract involves mutual obligations and promises from both parties. Each of these categories implies a different construct of negotiation and agreement compared to the one-sided nature of an adhesion contract.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy