In what type of contract does one party draft the terms that the other party must adhere to?

In a contract of adhesion, one party prepares the contract terms, and the other party has limited or no ability to negotiate those terms. This type of contract is often presented on a "take-it-or-leave-it" basis, meaning that the adhering party must accept the terms as they are written if they wish to enter into the agreement. This is common in scenarios involving standard form contracts, such as insurance agreements or service contracts, where the party providing the service or insurance presents a standard set of terms that the consumer must comply with.

In the context of title insurance, contracts of adhesion ensure that the insured must accept the terms set forth by the insurance provider, which may include stipulations regarding coverage, exclusions, and obligations. This characteristic makes it crucial for consumers to have a clear understanding of the terms since they cannot alter them upon entering into the contract.