Modern Approach towards “Standard form” Contracts: A Legal Perspective

Abstract

In “Standard Form” contracts, one party drafts the terms and conditions and the other party is invited to accept it or leave it. Only option for the invited party is either adhere to all the terms and conditions or leave it altogether. Standard forms are commonly used in the contemporary complex world of mass corporations, mass production of goods and services among others.In addition to agreements in commercial transactions standard terms and conditions are used in agreements with public authorities, multinational corporations, huge corporations, the banking industry, the insurance industry, the transportation industry, etc.

These contracts are termed and named differently in different jurisdictions. Sometimes it is referred to as standard-form contract or boilerplate agreements. The Standard Form contracts s are used abundantly in every field. Examples include insurance contacts, employment contracts, banking contracts, transportation, online websites and software among others.

This study aim to discuss the origin and historical evolution of the standard form contracts including its characteristics and features. This study will also provide a comparison between the standard contracts and the conventional contractual Paradigm. Additionally, the contract freedom principle and initial judicial response to the contracts of adhesion has also been discussed in this study. Finally, the application of strict contract theory and modern approach towards standard form contracts, doctrine of Unconscionability has been discussed from legal prospective. This study will help to understand the rights of weaker parties and to protect them in any unjust situation arises from any such contract.