Final answer:
The doctrine of adhesion refers to contracts where one party sets the terms, giving them power over the other party. These contracts are typically non-negotiable and if not fairly balanced, courts can intervene to prevent unjust outcomes. Contractual rights are essential for the economy as they allow secure transactions and economic exchanges, like between a surgeon and a patient.
Step-by-step explanation:
The doctrine of adhesion refers to a contract drafted by one party (usually the more powerful party) in such a way that the other party (usually the consumer or employee) has little to no ability to negotiate the terms, essentially a "take it or leave it" scenario. This can lead to a situation where the drafting party has greater power over the other party because it has authored the contract. Such contracts are often standard form contracts or boilerplates that are not bargained for but are presented on a standard basis to all customers or employees.
Contractual rights, which are grounded in property rights, allow individuals to enter into agreements with others for the use of their property, with legal recourse if there's noncompliance. For example, an employment contract between a surgeon and a patient is based on the agreement that the surgeon will perform the operation and the patient will provide payment. Without enforceable contractual rights, the surgeon would face the risk of non-payment, and thus the entire transactional framework of our economy would be jeopardized, potentially leading to a slowdown in economic growth.
Thus, the doctrine of adhesion can result in an imbalance of power and can be seen as unfair to the weaker party, which is why courts will sometimes intervene to ensure that contracts are not unconscionable or unfairly one-sided.