"As is" is a phrase used to indicate the existing condition of something without any modifications or improvements. 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, with no
warranties or
guarantees regarding its quality.
In
legal
Law is a set of rules that are created and are law enforcement, enforceable by social or governmental institutions to regulate behavior, with its precise definition a matter of longstanding debate. It has been variously described as a Socia ...
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. 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.
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 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 intent (law), intentional deception to deprive a victim of a legal right or to gain from a victim unlawfully or unfairly. Fraud can violate Civil law (common law), civil law (e.g., a fraud victim may sue the fraud perpetrato ...
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
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 prope ...
issues if a
deed
A deed is a legal document that is signed and delivered, especially concerning the ownership of property or legal rights. Specifically, in common law, a deed is any legal instrument in writing which passes, affirms or confirms an interest, right ...
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 Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...
'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 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 1979 (c. 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 ...
.
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''
See also
* Unsupported feature
References
{{DEFAULTSORT:As Is
Legal terminology
Contract law