A take-it-or-leave-it contract prepared by the insurer and not negotiated is a

A take-it-or-leave-it contract prepared by the insurer and not negotiated is a

• A. Unilateral contract
• B. Aleatory contract
• C. Contract of adhesion
• D. Conditional contract

Answer: (C)

The situation describes an adhesion contract. It’s a standard form drafted by the insurer and offered to the insured on a take-it-or-leave-it basis, with little or no opportunity to negotiate the terms. The insured must accept the policy as written or go without coverage, which is exactly what “adhere” implies in this kind of agreement. While insurance can involve promises from both sides and payments may depend on a future loss (making it seem aleatory), that aspect isn’t what defines the contract type here. It’s the standardized, non-negotiable terms set by the insurer that make it an adhesion contract.

The situation describes an adhesion contract. It’s a standard form drafted by the insurer and offered to the insured on a take-it-or-leave-it basis, with little or no opportunity to negotiate the terms. The insured must accept the policy as written or go without coverage, which is exactly what “adhere” implies in this kind of agreement.

While insurance can involve promises from both sides and payments may depend on a future loss (making it seem aleatory), that aspect isn’t what defines the contract type here. It’s the standardized, non-negotiable terms set by the insurer that make it an adhesion contract.