Which of the following is NOT a characteristic of contracts of adhesion?

Contracts of adhesion are typically characterized by a few key features. One primary characteristic is that they are drafted by only one party, usually the party that holds superior bargaining power, such as an insurance company. This creates a situation where the other party must accept the terms as they are presented, leading to a situation where one party adheres to the established terms without negotiation.

When we look at the characteristics provided, the aspect that involves terms being negotiated by both parties does not align with the nature of contracts of adhesion. In such contracts, the weaker party often has little to no opportunity to negotiate the terms; they must accept the contract as presented if they wish to proceed. Therefore, the assertion that terms are negotiated by both parties is incorrect and identifies it as not a characteristic of contracts of adhesion.

The other characteristics listed align well with these types of contracts: they are drafted by one party, commonly found in insurance settings, and involve a significant power imbalance between the parties involved. Understanding this imbalance emphasizes why one party is forced to adhere strictly to the terms set by the other, reinforcing the defining characteristics of adhesion contracts.