Which definition describes a contract drafted by one party that must be accepted or rejected by the other party as it is written?

• A. A Contract of Indemnity
• B. A Contract of Adhesion
• C. A Conditional Contract
• D. An Aleatory Contract

Answer: (B)

Adhesion contracts are standard‑form agreements drafted by one party, with the other party choosing to accept the terms as written or reject them. In life insurance practice, the insurer provides the policy language and the applicant or policyowner must accept the form as issued, often with little to no room for negotiating boilerplate provisions. This is distinct from indemnity contracts, which focus on restoring the insured to a prior financial position after a loss rather than how the contract is drafted or accepted. A conditional contract depends on a future condition being satisfied, and an aleatory contract centers on an uncertain event affecting the value exchanged. So the described situation fits an adhesion contract.