These types of contracts are not in themselves illegal, but there is potential for unscrupulousness. In addition, in the event of ambiguity, such ambiguity is resolved against the party who writes the language of the contract. By providing a standardized contract with non-negotiable terms, liability contracts reduce the need for consumer-specific custom contracts, increasing efficiency and saving time for both buyer and seller.  sdcorporatelaw.com/business-newsletter/what-is-a-contract-of-adhesion/ jurisdictions may use the “reasonable expectations doctrine” to invalidate contractual clauses when the clause was outside the reasonable objective expectations of the person who did not develop the contract. To understand what a liability contract is, it can be seen if two parties enter into an agreement; when one party develops the agreement signed by the other party. The undersigned party is generally in a weaker position, as in the case of transactions with consumers where the possibilities for changes to contractual terms are minimal. As a general rule, the Common Law treats standard standard contracts like any other contract. The signature or any other objective desire to be legally bound binds the signatory to the treaty, whether he reads or understands the terms. However, the reality of using standard forms means that many legal systems have developed specific rules for them. In general, in the event of ambiguity, the courts will interpret standard standard contracts against the proferentem (against the party that developed the contract), since that party (and only that party) was able to design the contract to eliminate ambiguities. Liability contracts are essentially “take or leave” contracts and contain non-negotiable terms. The parties who have the contract often do so in such a way that all costs associated with the loss or deterioration of the assets to be acquired are paid to the purchaser. It represents a disproportionate risk to the buyer – who may have no choice but to sign the contract.
Frequent uses of liability contracts include insurance contracts, mortgages, leases and temperance contracts (e.g. furniture or car purchases). In Canada, exclusion clauses cannot be invoked in a standard form contract if a seller knows or has reason to know that a buyer is wrong about its terms (Tilden Rent-A-Car Co).