As is, when employed as a term with
legal
Law is a set of rules that are created and are law enforcement, enforceable by social or governmental institutions to regulate behavior,Robertson, ''Crimes against humanity'', 90. with its precise definition a matter of longstanding debate. ...
effect, is 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. A similar concept is a "
buyer beware
''Caveat emptor'' (; from ''caveat'', "may he/she beware", a subjunctive form of ''cavēre'', "to beware" + ''ēmptor'', "buyer") is Latin for "Let the buyer beware". It has become a proverb in English. Generally, ''caveat emptor'' is the contrac ...
" claim, 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: 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.
For example, a seller of a used automobile sells it to a buyer, and puts into the
contract of sale
A contract of sale, sales contract, sales order, or contract for sale is a legal contract for the purchase of assets (goods or property) by a buyer (or purchaser) from a seller (or vendor) for an agreed upon value in money (or money equivalent) ...
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
In law, fraud is intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can violate civil law (e.g., a fraud victim may sue the fraud perpetrator to avoid the fraud or recover monetary compen ...
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
Real estate is 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 (also) an item of real property, (more genera ...
, and their respective improvements, may be faced with other complicated
property law
Property law is the area of law that governs the various forms of ownership in real property (land) and personal property. Property refers to legally protected claims to resources, such as land and personal property, including intellectual pro ...
issues if a
deed
In common law, a deed is any legal instrument in writing which passes, affirms or confirms an interest, right, or property and that is signed, attested, delivered, and in some jurisdictions, sealed. It is commonly associated with transferrin ...
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
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and ...
's laws on
consumer protection
Consumer protection is the practice of safeguarding buyers of goods and services, and the public, against unfair practices in the marketplace. Consumer protection measures are often established by law. Such laws are intended to prevent business ...
, and
unfair contract terms
Unfair terms in English contract law are regulated under three major pieces of legislation, compliance with which is enforced by the Office of Fair Trading. The Unfair Contract Terms Act 1977 is the first main Act, which covers some contracts that ...
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
The Sale of Goods Act 1979c 54 is an Act of the Parliament of the United Kingdom which regulated English contract law and UK commercial law in respect of goods that are sold and bought. The Act consolidated the original Sale of Goods Act 1893 ...
.
However, in the United States'
Uniform Commercial Code
The Uniform Commercial Code (UCC), first published in 1952, is one of a number of Uniform Acts that have been established as law with the goal of harmonizing the laws of sales and other commercial transactions across the United States through U ...
, "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.
Uniform Commercial Code, § 2-316. Exclusion or Modification of Warranties
accessed 25 August 2019
American case law
*'' Lenawee County Board of Health v. Messerly''
References
{{DEFAULTSORT:As Is
Legal terminology
Contract law