Which type of contract is characterized by one party having greater power over the other?

A contract of adhesion is characterized by one party having greater power over the other, usually in terms of bargaining position or negotiating leverage. In these contracts, the terms are typically set by the more powerful party, often leaving the other party with little to no ability to negotiate the terms. This type of contract is common in situations where the weaker party is presented with a standard set of terms that they either accept in full or reject entirely.

The nature of contracts of adhesion is often reflected in various consumer contracts, such as insurance policies or rental agreements, where the terms are drafted by the provider of the service and are presented on a "take it or leave it" basis. This dynamic invites scrutiny regarding the fairness of the terms, as well as potential legal considerations about their enforceability.

In contrast to contracts of adhesion, mutual contracts involve both parties having a say in the terms, standard contracts typically follow established formats without inherent power imbalances, and voidable contracts depend on one party's ability to affirm or reject the contract due to certain legal conditions or circumstances.