Which type of contract is characterized as one where one party has more power in dictating terms?

A contract of adhesion is a type of agreement that is generally drafted by one party, typically the stronger party, and presented to the other party on a "take it or leave it" basis. This arrangement means the weaker party has little to no ability to negotiate terms, which highlights the power imbalance inherent in this kind of contract. In most cases, these contracts are used in situations where one party possesses a considerable advantage or dominance, such as insurance policies or lease agreements.

The standard nature of contracts of adhesion is that they are usually lengthy and complex, leading the weaker party to accept the terms as presented, despite the potential for unfairness. The law often intervenes to protect the weaker party from overly oppressive clauses, recognizing that the other party had the leverage to dictate terms without meaningful negotiation.

In contrast, conditional contracts depend on an event occurring, bilateral contracts involve mutual promises between two parties with equal bargaining power, and aleatory contracts involve an uncertain event whose outcome is typically linked to a financial gain or loss—none of which inherently illustrate the dynamics of power between the contracting parties like a contract of adhesion does.