What is the primary distinguishing characteristic of a contract of adhesion?

A contract of adhesion is characterized by its nature of being drafted by one party, typically the dominant party, without meaningful negotiation with the weaker party. This results in an unequal balance of power in the creation of the contract. The weaker party is usually presented with a "take it or leave it" scenario, where they must accept the terms as they are or forgo the agreement altogether.

This disparity highlights the power dynamics in the contract's formation, as the drafting party often controls the terms and conditions, while the other party has little to no say in the matter. This aspect is crucial in insurance contracts, which are often seen as standard agreements that consumers have to accept without change. Understanding this characteristic helps distinguish contracts of adhesion from other types of contracts where both parties participate more equally in the negotiation and drafting processes.