Which contract type is characterized by terms that are completed by one party, typically the insurer?

Which contract type is characterized by terms that are completed by one party, typically the insurer?

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

Answer: (C)

In a contract of adhesion, the terms are drafted by one party and the other party must accept them as written. In insurance, the insurer creates the policy with standard forms and conditions, and the insured simply accepts or rejects the contract. The idea that the terms are “completed by one party” fits perfectly: the insurer completes and sets the terms, and the insured adheres to them by signing. Other options don’t describe this drafting dynamic—an aleatory contract centers on uncertain events, a personal contract focuses on the relationship between individuals, and estoppel is a legal principle, not a contract type.

In a contract of adhesion, the terms are drafted by one party and the other party must accept them as written. In insurance, the insurer creates the policy with standard forms and conditions, and the insured simply accepts or rejects the contract. The idea that the terms are “completed by one party” fits perfectly: the insurer completes and sets the terms, and the insured adheres to them by signing. Other options don’t describe this drafting dynamic—an aleatory contract centers on uncertain events, a personal contract focuses on the relationship between individuals, and estoppel is a legal principle, not a contract type.