Is the Agreement an Unenforceable Contract of Adhesion?
The Court next considered whether, although the contract might be valid on its face based on its terms, it was an unenforceable “contract of adhesion.”11 A contract of adhesion is one in which one of the parties (here, the employee) does not have meaningful opportunity to negotiate the terms of that contract. To be sure, a contract is not necessarily void even if it is found to be a contract of adhesion. “The standardized nature of the contract, the parties relative bargaining positions, the subject matter of the contract, the degree of economic compulsion”12 that motivates the (weaker) party to enter into the contract, and public interest, are all considerations that weigh in determining whether a contract of adhesion will be void. The Martindale Court held that the Sandvik employment application was not “offered on a take-it-or-leave-it basis,”13 such that it was a contract of adhesion. The Court weighed heavily the fact that Sandvik gave Martindale the “opportunity to ask questions
The Court next considered whether, although the contract might be valid on its face based on its terms, it was an unenforceable “contract of adhesion.”11 A contract of adhesion is one in which one of the parties (here, the employee) does not have meaningful opportunity to negotiate the terms of that contract. To be sure, a contract is not necessarily void even if it is found to be a contract of adhesion. “The standardized nature of the contract, the parties relative bargaining positions, the subject matter of the contract, the degree of economic compulsion”12 that motivates the (weaker) party to enter into the contract, and public interest, are all considerations that weigh in determining whether a contract of adhesion will be void. The Martindale Court held that the Sandvik employment application was not “offered on a take-it-or-leave-it basis,”13 such that it was a contract of adhesion. The Court weighed heavily the fact that Sandvik gave Martindale the “opportunity to ask questions
