Which of the following statements best describes a Contract of Adhesion?

A Contract of Adhesion is characterized by the scenario where one party presents terms that the other party must accept as they are, without any ability to negotiate. This type of contract typically arises in situations where there is a disparity in bargaining power, such as in insurance agreements. The insurer provides a standard form document with pre-set terms, which the insured must agree to if they wish to proceed. This lack of negotiation power for the party accepting the contract highlights the nature of a Contract of Adhesion.

In the context of the other statements, they do not accurately reflect the concept of a Contract of Adhesion. For instance, stating that parties have equal negotiating power would misrepresent the fundamental dynamic at play in such contracts. Similarly, the notion that terms can be adjusted mutually after contracting directly contradicts the nature of adhesion contracts, where the agreement is typically fixed and non-negotiable. Lastly, asserting that contracts are always negotiable in insurance overlooks the critical distinction of adhesion contracts, where the terms are designed to be accepted as is, reinforcing the lack of negotiation involved.