What does a contract of adhesion imply about its terms?

A contract of adhesion is characterized by one party setting the terms of the contract with little or no input from the other party, which typically results in a "take-it-or-leave-it" situation. This means that the terms are presented by one party—usually a business or service provider—who has significantly more power in the negotiation process, and the other party, often a consumer, must accept the terms as they are without the opportunity to negotiate or make changes.

This structure is common in insurance agreements and similar situations, where the standardized contract is designed for mass distribution. The key aspect is that the party on the receiving end of the contract cannot alter the terms; they simply have to decide whether to accept them or reject them completely.

In this context, the correct answer reflects the nature of a contract of adhesion, emphasizing that the terms are not subject to negotiation, aligning with the definition of such contracts in legal and business environments. The other answer choices suggest negotiation, mutual agreement, or equality in terms, which are not characteristic of adhesion contracts.