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What do the words "acting on level terms" mean in the following context:

"... whether the term is a standard term, not merely in similar non-negotiable contracts, but in commercial contracts freely negotiated between parties acting on level terms and at arms' length;..."?

Thank you!

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This question may be a better fit for Law Stack Exchange, but in general, "level terms" refers to a situation where no one has an advantage: everyone is equal and the situation is fair. I suspect this may have a more specific and nuanced meaning in law (I know "arm's length" definitely does).

In everyday language, "on a level playing field" is a more common variation.

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