Standard contracts (contracts of adhesion): when the contract is drafted only by one of the

parties in a position of power, leaving the other party in a position of “take it or leave it”.
(consumers can not negotiate/change the terms/details of the contract).  does not allow for
negociation, there are no modifications.

Adhesion contracts are often used for insurance, leases, vehicle purchases, mortgages…

Tailor made contracts/non-standarised contracts: Certain parameters of the contract (price

have been altered with respect to standard contracts.

SHORT TERM CONTRACTS: less than 1 year

ADVANTAGES OF STANDARD CONTRACTS:

-Why are the standard contracts safer?

 The first argument to defend it, is that standard contracts reduce the cost of
contracting by eliminating the need for customing contracts that have the
tailor made contracts.
 This allows both parties to save money and in conclusion to make the
contract safer.

 It eliminates the scope for negotiation, and this, speeds up the bidding
process.
 Spending more time in the process of constructing the contract
implies more probability to make mistakes in the final result.

 They are used the same terms every time a contract is formed. This makes
it easy for people to become familiar with the terms of standard contracts of
their industry. As time passes, people's confidence also grows in the terms
of the contract.
 Using the same terms constantly make the contract easier to fulfill and
this will supose more difficulty to make mistakes and to make the
contract more dangerous. In conclusion this implies more safety for
both parties.

 Consistency in contracts, this suppose less room for deviation from the
terms set out in the contract. It prevents employers from making any
changes in the contract without informing their clients. As a result of this the
number of “unforeseen anomalies” is reduced making the contract safer for
both.
  The standard contracts offer a legal protection that tailor made ones do not.
In case there is any unfair term the court could struck out those terms.

DISADVANTAGES OF STANDARD CONTRACTS:

 Price Fixing: Fijar Precios  there are regulations that prevent companies to
establish the prices that they want. Apart from that if they would establish the
prices that they want, for sure they would lose clients. (Some companies have
been sued problem of the company, it is not due to the type of contract).

 Abusive Clauses/Terms  Report the abusive clauses or the abusive

contract to a court. The court would not allow/permit to give legal validity to an
excessive contract.

- Courts take in account if one party is weaker tan the other one and
has much more less bargaining power
- If the party lacks of meaningful choice as to sign the contract
- If one of the parties was deprived of a meaningful opportunity to
review the contract.

 Language Problems: if you have any doubt with any of the words/terms … (if
you think if it has double sense), just ask the other party

 Boilerplate (repetitivo, texto estándar, cliché) : It does not mind which type of
contract is it. You have to read the contract slow and carefully.