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"As is" is a phrase used to indicate the existing condition of something without any modifications or improvements.[1] The term is employed in legal, business, and consumer settings to establish that an item or property is being sold or provided in its current condition,[2][3] with no warranties or guarantees regarding its quality.[4][5]

In legal contexts, the phrase "as is" is used in contracts, agreements and sales transactions, indicating that the subject of the transaction is offered in existing its condition. It is used to disclaim implied warranties for an item being sold.[6] Certain types of implied warranties must be specifically disclaimed, such as the implied warranty of title. "As is" denotes that the seller is selling, and the buyer is buying an item in whatever condition it presently exists, and that the buyer is accepting the item "with all faults", whether or not immediately apparent. A similar concept is a "buyer beware" claim, where the careful buyer should take the time to examine the item before accepting it, or obtain expert advice.[7][8]

On the other hand, the phrase "as is" does not disclaim "express" warranties: these may, for example, be created by the seller's description of an item. In other words, though the item may be sold "as is", nevertheless, if it for example does not conform to the seller's description of it, the buyer may void the sale.

A car at an auction, the sign in its window indicating that it is to be "sold as seen"

For example, a seller of a used automobile sells it to a buyer, and puts into the contract of sale the statement: "The buyer accepts the automobile as is, with all faults." Two minutes after the buyer drives off with it, the car stalls, and the engine seizes. Unless the buyer can show that there was some fraud involved, or the seller breached an express warranty, the buyer is not entitled to a refund. This would be a specific example where fraud in the inducement could outweigh anything in the contract, express or implied: it simply does not matter what disclaimer or limitations may be found in the contract, if the contract is void (or voidable) for any reason.

Disgruntled buyers of real estate, and their respective improvements, may be faced with other complicated property law issues if a deed is conveyed as a result of a contract with an "as is" clause. In real estate, these are the larger potential problems than issues with the structure itself, which can be drawn out with an inspector. Searching public records is often difficult, and often done lazily by the seller; this means that the buyer may be burdened with liens on the home, and face various fees related to things such as public utilities.

In many jurisdictions, disclaimer of various implied warranties is void. For instance, the United Kingdom's laws on consumer protection and unfair contract terms may limit the ability of a manufacturer or seller to limit or exclude liability for various types of damage. See, for instance, the Unfair Terms in Consumer Contracts Regulations 1999 and Sale of Goods Act 1979.

However, in the United States' Uniform Commercial Code, "as is" is quoted as an example of the type of language capable of excluding all implied warranties through which the law might otherwise protect a buyer.[9]

American case law

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See also

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References

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As is

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from Grokipedia
"As is" is a legal term used in contracts to denote that the buyer accepts the , , or item in its current condition, without any implied or express warranties from the seller regarding its , fitness, or . This clause shifts the responsibility for any defects or issues to the buyer, who must conduct their own inspections and prior to purchase. In the context of sales of goods, the (UCC) Section 2-316 governs the exclusion of implied warranties of merchantability and fitness for a particular purpose, permitting disclaimers through conspicuous language such as "as is," "with all faults," or equivalent phrases that clearly alert the buyer to the absence of warranties. Such disclaimers must be in writing and sufficiently prominent to be effective, ensuring the buyer understands they are forgoing legal protections against latent defects. This provision applies across jurisdictions adopting the UCC, standardizing commercial transactions . In transactions, an "as is" provision typically means the seller refuses to perform repairs or remedies for known or unknown issues, compelling the buyer to rely on pre-purchase inspections and accept the property's state at closing. This is common in residential and commercial sales to expedite deals and limit seller liability, but it does not absolve the seller from disclosing material facts as required by state laws. Despite its protective intent for sellers, an "as is" clause does not shield against claims of , , or intentional concealment of defects, allowing buyers to seek remedies if the seller actively deceives them. Courts consistently hold that prohibits using such clauses to evade accountability for fraudulent conduct, preserving buyer rights in cases of deceit.

Definition and Etymology

Core Meaning

In contract law, the "as is" serves as a that specifies an item, good, or is being sold or transferred in its existing condition at the time of the transaction, with the buyer fully assuming responsibility for any defects, whether visible or latent. This provision shifts the risk of quality or performance entirely to the purchaser, meaning the seller provides no assurances beyond the explicit terms of the agreement itself. Commonly used in sales agreements, it underscores that the buyer accepts the item without expectation of post-sale remedies from the seller for issues that arise. A key distinction of the "as is" clause is its role in excluding implied warranties that would otherwise apply in standard transactions, such as the implied warranty of merchantability, which ensures goods are fit for their ordinary purpose under frameworks like UCC § 2-314. By incorporating "as is" language, sellers effectively disclaim these statutory protections, alerting buyers that no such guarantees exist and emphasizing the need for thorough pre-purchase . This exclusion prevents buyers from later claiming breach of implied terms, reinforcing that the transaction proceeds without hidden seller liabilities for usability or condition. Contracts employing this clause often use specific phrasing to clarify its scope, such as "sold as is" to denote of the current state, or "as is, where is" to additionally indicate that the buyer must take the item in its present location without relocation by the seller. Conceptually, an "as is" agreement imposes no ongoing obligations on the seller, including duties to repair identified defects, disclose hidden issues unless involving or , or ensure the item's fitness for any intended use. This structure promotes clear risk allocation, particularly in scenarios like sales where buyers are encouraged to conduct independently.

Historical Origins

The phrase "as is" in legal and commercial contexts traces its etymological roots to Latin expressions implying an unaltered or existing state, such as "tantum et tale" (thus and such), a term used in to disclaim implied warranties in property transfers or sales, indicating that the item is conveyed exactly as it stands without guarantees. This linguistic foundation evolved within English during the 19th century, where the phrase began to explicitly denote the sale of in their current condition, free from seller liability for defects unless fraudulently concealed. The development reflected broader mercantile practices emphasizing buyer over seller assurances. Early applications of the "as is" concept appeared in 18th- and 19th-century auction sales, where goods were routinely offered without warranties, requiring buyers to examine items on-site before bidding to assume all risks of or condition. These practices underscored the absence of implied assurances, placing burdens squarely on purchasers. The "as is" disclaimer was profoundly shaped by the longstanding doctrine of ("let the buyer beware"), a cornerstone of English that predated 20th-century consumer protections and mandated that buyers inspect at their own peril, with sellers liable only for title or overt misrepresentation. This principle, articulated as early as the 17th century but firmly entrenched by the 18th, influenced trade norms by limiting seller obligations to express warranties alone. In Commentaries on the Laws of England (1765–1769), reinforced this framework, stating that "with regard to the goodness of the wares so purchased, the vendor is not bound to answer; unless he expressly warrants them to be sound and good," thereby codifying buyer responsibility in sales transactions. Cases like Parkinson v. Lee (1802) further illustrated its application, denying recovery for defective absent explicit guarantees, while 19th-century rulings such as Jones v. Bright (1829) began introducing limited exceptions for merchantable quality in specific trades, signaling gradual evolution amid industrial expansion.

Applications in Commerce

Sales of Goods

In sales of goods under the Uniform Commercial Code (UCC) Article 2, which governs transactions involving movable personal property, an "as is" clause serves to disclaim all implied warranties, such as those of merchantability and fitness for a particular purpose, unless circumstances indicate otherwise or express warranties override the disclaimer. This exclusion applies specifically to implied protections that would otherwise ensure goods are fit for ordinary use or a buyer's specified needs, shifting the risk of defects to the buyer while preserving any explicit seller representations. To invoke an "as is" disclaimer effectively, the seller must use clear language, such as "as is" or "with all faults," that draws the buyer's attention to the absence of implied warranties, and this is typically required to be in writing for enforceability, particularly in transactions where oral agreements often fail to meet the standard. Although the UCC does not explicitly mandate writing for all "as is" exclusions, courts generally uphold only those that are conspicuous and part of the written to avoid and protect against disputes. Buyers assuming an "as is" sale accept responsibility for both visible defects, which they are expected to inspect, and latent defects that may emerge later, with remedies severely limited—often confined to revocation of acceptance under UCC Section 2-608 only if a substantial nonconformity is proven, or pursuit of claims if the seller misrepresented the goods. Without evidence of or breach of express warranties, buyers cannot seek damages for implied warranty violations, emphasizing the need for thorough pre-purchase inspections to mitigate unforeseen repair costs. Common scenarios for "as is" sales include used car transactions, where dealers post the federal Buyers Guide specifying "as is" to disclaim implied warranties and limit liability for mechanical issues. Dealerships often sell as-is vehicles that are higher-risk or lower-margin, including recent trade-ins not fully inspected or repaired, auction purchases bought cheaply and flipped quickly, older cars, high-mileage vehicles, or cosmetically imperfect ones where fixing issues wouldn't be profitable. and online marketplaces like , where sellers include "as is" in listings to restrict returns and disclaim implied protections against defects in secondhand items. In these contexts, the clause streamlines of variable-condition but heightens buyer caution regarding product condition.

Real Estate Transactions

In transactions, an "as is" is commonly included in both residential and contracts to indicate that the seller is transferring the property in its existing condition, thereby shifting the responsibility for identifying and addressing defects to the buyer through professional inspections. This provision encourages buyers to conduct thorough , such as structural assessments and environmental reviews, prior to closing, as the seller makes no representations or warranties regarding the property's physical state beyond what is legally required. In commercial contexts, "as is" sales are nearly standard, reflecting the negotiated nature of business deals where buyers often employ specialized experts to evaluate potential issues like compliance or adherence. The "as is" clause operates in conjunction with state-specific disclosure laws, which mandate that sellers reveal any known material defects that could adversely affect the property's value or use, such as prior or pest infestations, regardless of the clause's presence. However, the clause effectively limits seller liability for unknown or latent structural problems, like hidden foundation cracks, that are not observable during a standard and were not intentionally concealed. This balance protects honest sellers from post-sale litigation over unforeseen issues while upholding buyer protections against or nondisclosure of apparent risks. During the closing process, buyers typically have a defined inspection period—often 10 to 15 days—after which they must either accept the or terminate the ; upon proceeding, they waive future claims related to the 's condition as observed or discoverable at that time. "As is" provisions are particularly prevalent in foreclosures and quick sales, where lenders or distressed owners sell properties without repairs to expedite the transaction, leaving buyers to handle any rehabilitation costs. In such scenarios, properties are transferred in their current state, often with limited access for pre-sale inspections, heightening the importance of buyer vigilance. Variations in "as is" application arise by property type, with residential sales of new or builder-constructed homes facing higher scrutiny due to implied standards that ensure homes are fit for living, potentially limiting the clause's scope in waiving certain warranties. Commercial and industrial sites, by contrast, involve fewer mandatory disclosures and allow broader "as is" acceptance, as buyers are presumed to have greater expertise in assessing functionality for business purposes rather than personal occupancy. This distinction reflects differing legal emphases on in versus the arm's-length negotiations typical in commercial deals.

Buyer Responsibilities

In "as is" agreements, buyers bear the primary responsibility for conducting thorough prior to purchase to uncover any potential issues with the or . This typically involves arranging professional inspections to assess structural integrity, functionality, and hidden defects in transactions, as well as appraisals to evaluate and condition. For sales of , buyers should perform physical examinations or tests where feasible to verify and compliance with intended use. Additionally, searches are essential in deals to reveal encumbrances, liens, or disputes that could affect value. Failure to complete these steps shifts the full burden of any undiscovered problems onto the buyer. Following the sale, buyers assume all post-purchase liabilities, including the costs of repairs, maintenance, or remediation for defects present at the time of transfer. Under "as is" terms, there is generally no recourse against the seller for latent or defects unless the seller engaged in affirmative or failed to disclose known material issues. This means buyers must budget for potential unforeseen expenses and cannot expect seller contributions to fixes, emphasizing the high-risk nature of such transactions. To mitigate these risks, consumers are strongly advised to seek professional guidance before finalizing an "as is" purchase, such as engaging licensed home inspectors for evaluations or attorneys to review terms and identify red flags. In or goods sales, consulting experts like appraisers or industry specialists can help validate the asset's condition and value. This proactive approach allows buyers to negotiate adjustments or walk away if issues arise during the period. Remedies available to buyers are severely limited in "as is" sales, with claims viable only in cases of seller non-disclosure of material facts or fraudulent concealment, rather than dissatisfaction with the overall condition. General or expected deterioration does not qualify for legal action, reinforcing the principle of where the buyer must rely on their own investigations. This structure protects sellers from post-sale disputes over routine issues while placing the onus on buyers to act diligently.

Seller Protections

The "as is" clause serves as a key of liability for sellers, shielding them from post-sale claims arising from unknown defects in the or sold. For of , sellers can explicitly state that the item is sold without warranties to exclude implied warranties of merchantability and fitness for a particular purpose under the (UCC) § 2-316, thereby limiting their exposure to lawsuits based on the condition of the item at the time of transfer. In transactions, "as is" provisions similarly limit seller liability for the property's condition but do not override state-mandated disclosure requirements for known material defects. This mechanism allocates the risk of latent defects to the buyer, who assumes responsibility for any issues not apparent during purchase. For an "as is" to be enforceable, it must meet specific requirements, including being conspicuous—such as in bold, larger font, or a separate —to ensure the buyer notices and understands the —and the agreement must be entered voluntarily without duress. Additionally, courts may refuse to enforce the clause if it is deemed unconscionable under applicable , evaluating factors like the of the parties, the commercial setting, and whether the terms are grossly unfair at the time of contracting. For goods sales, this is governed by UCC § 2-302. These safeguards prevent abuse while upholding the clause's protective intent for honest sellers. In high-risk sales, such as those involving properties with potential hidden environmental hazards like , the "as is" clause offers substantial benefits by protecting sellers from for undisclosed issues that could otherwise lead to costly remediation claims. This is particularly valuable in transactions where thorough inspections may not reveal all risks, allowing sellers to transfer ownership without ongoing responsibility for unforeseen problems. The clause's effectiveness in these scenarios underscores its role in facilitating commerce for items with inherent uncertainties. Despite these protections, ethical and legal boundaries persist, as sellers remain liable for or active concealment of known defects, ensuring that "as is" does not permit deceptive practices. Courts consistently hold that intentional or failure to disclose material facts vitiates the , promoting transparency and honest dealings in sales. This limitation reinforces the clause's alignment with broader principles of contract law, while complementing the buyer's independent to inspect.

Jurisdictional Variations

United States Framework

In the , the primary statutory framework for "as is" sales involving is governed by the (UCC), specifically Section 2-316(3)(a), which permits the exclusion of implied warranties of merchantability and fitness for a particular purpose through explicit language such as "as is" or "with all faults," provided the circumstances do not indicate otherwise. This provision, adopted in some form by all states except , establishes a baseline for commercial transactions by allowing sellers to disclaim implied warranties if the disclaimer is clear and conspicuous, thereby shifting the risk of defects to the buyer. While the UCC promotes uniformity across jurisdictions, states have implemented adaptations that introduce variations, particularly in contexts. For instance, most states adhere closely to the UCC's standards, enabling "as is" disclaimers in both commercial and consumer sales of , but others impose stricter requirements to safeguard buyers. In , the Song-Beverly Consumer Warranty Act, codified in Section 1791, defines an "as is" sale as one where the manufacturer, distributor, and retailer disclaim all implied warranties otherwise applicable under the chapter, yet it mandates additional disclosures and limits such sales for certain consumer to prevent deceptive practices. This reflects a broader trend where states like , , , and prohibit or severely restrict "as is" disclaimers for consumer products, prioritizing buyer protections over uniform commercial flexibility. At the federal level, the Magnuson-Moss Warranty Act of 1975 (15 U.S.C. §§ 2301–2312) overlays additional requirements on "as is" sales of consumer products, mandating clear and conspicuous labeling to inform buyers when no written warranty is provided and implied warranties are disclaimed. The Act does not require warranties but ensures that if a product is sold "as is," sellers must explicitly state the absence of implied warranties in writing, prohibiting hidden or unclear disclaimers that could mislead consumers; this applies to tangible intended for personal, family, or household use, distributed in commerce. Violations can result in civil penalties, emphasizing transparency in interstate transactions. For real estate transactions, "as is" provisions fall under state-specific property laws rather than the UCC, which applies only to movable goods, and typically require mandatory disclosures to mitigate risks despite the disclaimer. In New York, the Property Condition Disclosure Act (Real Property Law § 462) compels sellers of one- to four-family dwellings to provide a detailed statement on the 's condition, including known defects, even in "as is" sales, with exemptions only for new homes or certain transfers; willful failure to provide the disclosure or knowingly providing false information may result in liability for the buyer's actual . Amendments effective March 20, 2024, eliminated the prior option for sellers to provide a $500 credit in lieu of disclosure, mandating full compliance. Similar mandates exist in states like §§ 1102–1102.2) and ( Code § 5.008), where "as is" clauses do not absolve sellers from liability for or failure to disclose material facts, ensuring buyers receive essential information about structural issues, environmental hazards, or legal encumbrances. These frameworks balance seller protections with favoring informed transfers.

International Perspectives

In the European Union, the concept akin to "as is" sales is often termed "sold as seen," but it is significantly limited by consumer protection laws under Directive (EU) 2019/771 on contracts for the sale of goods. This directive mandates that sellers bear liability for any lack of conformity existing at the time of delivery, with a default two-year period during which buyers can enforce remedies such as repair, replacement, or price reduction. Disclaimers attempting to exclude seller liability for conformity—such as those implying goods are sold "as is"—are generally ineffective unless the consumer is explicitly informed of and accepts specific deviations from conformity requirements; otherwise, these rights cannot be waived to the consumer's detriment. In jurisdictions like the , the permits "as is" clauses to disclaim implied conditions of satisfactory quality and fitness for purpose under section 14, but such exclusions must satisfy the reasonableness test outlined in section 55, particularly when governed by the for non-consumer transactions. This requirement ensures that disclaimers are fair in light of the circumstances known to or contemplated by the parties, preventing overly broad waivers that disadvantage buyers without adequate opportunity for inspection or . For consumer sales, stricter protections under the [Consumer Rights Act 2015](/page/Consumer Rights Act 2015) further reinforce mandatory conformity standards, rendering "as is" terms largely inapplicable. Civil law systems, such as in , provide robust buyer protections against hidden defects even in purported "as is" transactions, as governed by Article 1641 of the Code Civil. This provision holds the seller liable for latent defects (vices cachés) that render the item unfit for its intended use or significantly reduce its value, allowing the buyer to seek rescission of the sale or a price reduction within a short period after discovery. While sellers may attempt to disclaim this warranty through explicit clauses (e.g., "sans garantie des vices cachés"), courts often scrutinize such waivers for validity, requiring that the buyer was fully aware of the risks and that the defects were not fraudulently concealed; incomplete or unfair disclaimers do not absolve the seller. In emerging markets like , the Sale of Goods Act 1930 accommodates "as is" sales by allowing parties under section 62 to exclude implied conditions of merchantable quality (section 15) and fitness for purpose (section 16) through express agreement. However, this framework emphasizes buyer diligence, as no implied conditions apply to defects that would be apparent upon reasonable examination, thereby placing the onus on the buyer to inspect prior to purchase and assume risks for discoverable flaws. In practice, courts uphold such exclusions only if the clearly notifies the buyer of the "as is" nature, promoting transparency while aligning with commercial efficiency in diverse marketplaces.

Notable Case Law

American Precedents

In the landmark case Webster v. Blue Ship Tea Room, Inc. (1964), the examined the implied warranty of merchantability and fitness for a particular purpose in the sale of food, ultimately holding that the presence of a fish bone in fish chowder did not breach the implied warranty of merchantability, as it was reasonably expected in such products. A key real estate precedent is Lingsch v. Savage (1963), where the Court of Appeal held that an "as is" clause in a property sale agreement is valid only to the extent that the buyer has had a reasonable opportunity to inspect the property and discover observable defects, but it does not shield sellers or brokers from liability for or nondisclosure of material hidden facts, such as structural disrepair or violations. The court reversed a dismissal of the buyers' claim, affirming that "as is" provisions negate warranties for visible conditions but impose a duty on sellers to disclose known latent defects affecting value or desirability, thereby protecting buyers from deceptive practices. Post-2000, U.S. courts have increasingly scrutinized "as is" clauses for , particularly in transactions where bargaining power is unequal, while generally upholding them in commercial contexts between sophisticated parties; for instance, in , courts invalidate such clauses if they are procedurally unfair (e.g., buried in ) or substantively oppressive (e.g., leaving buyers without recourse for essential defects), as seen in cases distinguishing contracts from arm's-length commercial deals. This trend reflects heightened judicial concern for protecting vulnerable buyers under UCC principles and state laws, without undermining legitimate risk allocation in .

Global Examples

In the , the case of Cavendish-Woodhouse Ltd v Manley Crim LR 239 addressed the validity of "as is" clauses in the context of consumer sales under the Sale of Goods Act 1979. The defendant auction house sold a suite of furniture to the buyer with the explicit condition "bought as seen and inspected," which the interpreted as excluding the sale from being one by . Consequently, implied terms of satisfactory and fitness for purpose did not apply, upholding the clause and absolving the seller of liability for defects. However, the decision emphasized that such clauses would be void and ineffective if the sale involved any misleading descriptions or statements about the goods' condition, as prohibited under the , thereby protecting buyers from deceptive practices. In , the in Tercon Contractors Ltd v (Transportation and Highways), 2010 SCC 4, examined the limits of s akin to "as is" provisions in commercial s. Tercon, a bidder in a government tender process, alleged that the province breached the implied duty of fairness by awarding the to another party despite Tercon submitting the lowest bid. The included a broad barring claims for any indirect or arising from the tender process. The majority of the Court retired the traditional doctrine of fundamental breach as a rule of interpretation but held that s could still be rendered unenforceable if they offended or were unconscionable. In this instance, the clause was deemed inapplicable to the province's fundamental breach of the tendering process's integrity, allowing Tercon to recover and illustrating how "as is"-style exclusions are curtailed for core contractual obligations. Australia's in Butcher v Lachlan Elder Realty Pty Ltd HCA 60 considered the efficacy of disclaimers resembling "as is" terms in transactions against claims of agent misrepresentations. The purchasers relied on a agent's depicting a waterfront property's boundaries and development potential via an inaccurate survey diagram. After purchase, they discovered the diagram overstated usable space, leading to a claim under section 52 of the Trade Practices Act 1974 for misleading or deceptive conduct. The included clauses disclaiming reliance on the agent's statements and affirming the sale "as is" based on the buyers' own inquiries. The majority held that these disclaimers neutralized any potential misleading effect of the , as they clearly warned against reliance on the agent's materials and the diagram was marked as indicative only. Nonetheless, the ruling underscored that "as is" protections fail if an agent's representations are independently misleading and attributable to without adequate disclaimer integration, highlighting agent accountability in property sales. In the , under the Consumer Sales Directive (Directive 1999/44/EC), sellers must guarantee that goods conform to the contract for at least two years, and any contractual terms attempting to limit or exclude this liability—such as "as is" clauses—are deemed unfair and unenforceable in B2C transactions. This principle ensures buyer protections against non-conforming vehicles or goods, prioritizing harmonized consumer rights over seller disclaimers. The directive was repealed and replaced by Directive (EU) 2019/771 as of 2022.

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  63. https://www.gdhm.com/wp-content/uploads/2016/08/whl-the-law-of-as-is-texas-bar-cle-agricultural-law-may-2009.pdf
  64. https://lawreview.law.ucdavis.edu/sites/g/files/dgvnsk15026/files/media/documents/53-2_Russell.pdf
  65. https://www.tandfonline.com/doi/pdf/10.1080/03069400.1984.9992627
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