As is
Encyclopedia
As is is a legal term used to disclaim some implied warranties
for an item being sold. 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. This is the classic "buyer beware
" situation, where the careful buyer should take the time to examine the item before accepting it, or obtain expert advice.
On the other hand, the phrase "as is" does not disclaim express warranties, such as those created by the seller's description of an item. In other words, the item may be sold "as is," but if the item does not conform to the seller's description, the buyer has a right to reject it.
For example, a seller of a used automobile
sells his car 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 engine
seizes, and the car stalls. 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 doesn't 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, 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
Implied warranty
In common law jurisdictions, an implied warranty is a contract law term for certain assurances that are presumed to be made in the sale of products or real property, due to the circumstances of the sale. These assurances are characterized as warranties irrespective of whether the seller has...
for an item being sold. 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. This is the classic "buyer beware
Caveat emptor
Caveat emptor is Latin for "Let the buyer beware". Generally, caveat emptor is the property law doctrine that controls the sale of real property after the date of closing.- Explanation :...
" situation, where the careful buyer should take the time to examine the item before accepting it, or obtain expert advice.
On the other hand, the phrase "as is" does not disclaim express warranties, such as those created by the seller's description of an item. In other words, the item may be sold "as is," but if the item does not conform to the seller's description, the buyer has a right to reject it.
For example, a seller of a used automobile
Automobile
An automobile, autocar, motor car or car is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor...
sells his car to a buyer, and puts into the contract of sale
Contract of sale
A contract of sale is a legal contract an exchange of goods, services or property to be exchanged from seller to buyer for an agreed upon value in money paid or the promise to pay same...
the statement: "The buyer accepts the automobile AS IS, WITH ALL FAULTS." Two minutes after the buyer drives off with it, the engine
Engine
An engine or motor is a machine designed to convert energy into useful mechanical motion. Heat engines, including internal combustion engines and external combustion engines burn a fuel to create heat which is then used to create motion...
seizes, and the car stalls. Unless the buyer can show that there was some fraud
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
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 doesn't 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
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
, and their respective improvements, may be faced with other complicated property law
Property law
Property law is the area of law that governs the various forms of ownership in real property and in personal property, within the common law legal system. In the civil law system, there is a division between movable and immovable property...
issues if a deed
Deed
A deed is any legal instrument in writing which passes, or affirms or confirms something which passes, an interest, right, or property and that is signed, attested, delivered, and in some jurisdictions sealed...
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, laws on consumer protection
Consumer protection
Consumer protection laws designed to ensure fair trade competition and the free flow of truthful information in the marketplace. The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors and may provide additional...
, 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
Unfair Terms in Consumer Contracts Regulations 1999
The Unfair Terms in Consumer Contracts Regulations 1999 is a UK statutory instrument, which implements the EU Unfair Consumer Contract Terms Directive into domestic law.Implemented under the European Communities Act 1972. See also, L95 OJ 29...
and Sale of Goods Act 1979
Sale of Goods Act 1979
The Sale of Goods Act 1979 is an Act of the Parliament of the United Kingdom which regulates English contract law and UK commercial law in respect of goods that are sold and bought. The Act consolidates the original Sale of Goods Act 1893 and subsequent legislation, which in turn had codified and...