A policy term described as completed by the insurer and presented on a take-it-or-leave-it basis fits which contract type?

A policy term described as completed by the insurer and presented on a take-it-or-leave-it basis fits which contract type?

• A. Personal Contract
• B. Contract of Adhesion
• C. Aleatory Contract
• D. Unilateral Contract

Answer: (B)

The situation describes a contract of adhesion. The policy is drafted by the insurer with standard terms and presented on a take-it-or-leave-it basis, giving the insured little to no opportunity to negotiate. The insured either accepts those terms as written or declines the coverage, which is the hallmark of an adhesion contract. The other options don’t fit: a personal contract isn’t about how terms are offered; an aleatory contract focuses on unequal exchange of value dependent on uncertain events; a unilateral contract involves a promise from one party conditioned on performance, not the fixed form of the agreement.

The situation describes a contract of adhesion. The policy is drafted by the insurer with standard terms and presented on a take-it-or-leave-it basis, giving the insured little to no opportunity to negotiate. The insured either accepts those terms as written or declines the coverage, which is the hallmark of an adhesion contract. The other options don’t fit: a personal contract isn’t about how terms are offered; an aleatory contract focuses on unequal exchange of value dependent on uncertain events; a unilateral contract involves a promise from one party conditioned on performance, not the fixed form of the agreement.