Also known as:as is warranty · as-is warranties · as is warranties · as is · as-is clause · as is clause
Written by attorneys · grounded in primary & secondary sources — see below
A contractual term in the sale of goods by which the seller disclaims implied warranties and the buyer accepts the goods in their existing condition with all faults.
Sources & Authorities
How it applies
Common Examples
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Client Directs Settlement Terms
Angela Acosta sold a used printing press to Aether Technologies under a contract containing an as-is clause. After delivery the buyer discovered latent defects that would have been covered by implied warranties but for the clause. The seller refused any remedy citing the as-is language. The buyer accepted the machine as delivered because the clause plainly excluded all implied warranties.
Life Estate Transfer With Faults
Adam Anderson conveyed a parcel to Alexandra Armstrong using a deed that included an as-is acceptance provision. The property contained undisclosed structural defects that impaired its value. Armstrong took possession and later sought to avoid the transfer on warranty grounds. The as-is language prevented any claim for implied warranties of quality.
Estate Distribution of Equipment
Antonio Alvarado's estate included industrial machinery sold by the personal representative to Alliance Holdings. The sale contract stated the equipment was transferred as is. After purchase the buyer discovered mechanical failures. The representative relied on the as-is clause to bar any implied warranty claims arising from the distribution.
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Statutes
Federal Rules
Uniform Acts
Model Codes
Restatements
Dictionaries
Trust Asset Sale to Creditor
Aether Technologies purchased equipment from a trust beneficiary subject to an as-is provision in the bill of sale. The buyer later asserted breach of implied warranty after discovering defects. The court limited recovery because the as-is clause made plain that no implied warranties accompanied the transfer of the beneficiary's interest.
Commercial Lease With Public Policy Issue
Aurora Biotech leased laboratory equipment to Ashford Manufacturing under an agreement containing conspicuous as-is language. The lessee later claimed the clause violated public policy because the equipment failed safety standards. The as-is term remained enforceable because it merely allocated risk and did not require illegal conduct.
Self-Defense Sale of Goods
Amber Alonzo sold a used vehicle to Aisha Ahmed under an as-is contract after the buyer inspected it. The car later proved defective. Ahmed argued the clause should not apply because of excessive risk. The as-is language controlled and limited any remedy to only the excessive portion of harm actually caused.
Common questions
Frequently Asked
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Does an as-is clause prevent rescission for fraudulent misrepresentation?+
No. An as-is clause does not bar rescission when the seller made knowing false statements that induced the buyer to enter the contract. The clause allocates risk for unknown defects but does not protect affirmative fraud.
Can an as-is clause be unenforceable on public policy grounds?+
Only in limited circumstances. Courts refuse enforcement when the clause requires a party to violate a statute or directly frustrates a clear legislative objective, but they ordinarily uphold the clause in arms-length commercial deals between sophisticated parties.
Does an as-is clause shift the risk of mistake about zoning or property condition?+
Yes when the buyer is sophisticated and the contract contains no contingency clause. The buyer bears the risk if it fails to verify material facts that were readily available and proceeds without inquiry despite an express as-is acceptance.
384 U.S. 436 (1966)Evidence
…him to exercise them. Moreover, it is consistent with our legal system that we give at least as much protection to these rights as is given in the jurisdictions described. We deal in our country with rights grounded in a specific requirement of the Fifth Amendment of the Constitution, whereas other jurisdictions arrived…
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