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Commerce · Q734

Insurance

Graduate and Post Graduate · Commerce · question 734

Q734

Why insurance contract is an Adhesion Contract?

A.
Insurance Co. has all the bargaining power
Answer
B.
Client has also great bargaining power
C.
Both A & B
D.
None of the three

Answer: Option A

Solution

Answer: Option A
Solution:
Adhesion contract is a legally binding agreement between two parties to do a certain thing, in which one side has all the bargaining power and uses it to write the contract primarily to his or her advantage.