Legal Definitions - all faults, with

The phrase "with all faults" is a legal term indicating that an item is being sold in its current condition, exactly as it is, including any and all defects, whether they are known or unknown to the buyer or seller. When a sale is made "with all faults," the seller is not providing any guarantees or warranties about the item's quality, condition, or fitness for any particular purpose. The buyer accepts full responsibility for any existing or future problems with the item and generally cannot seek compensation or recourse from the seller for defects discovered after the purchase.

Here are some examples to illustrate this concept:

• Example 1: Used Appliance Sale

  Imagine a homeowner selling an old washing machine through an online marketplace. In the listing, they explicitly state, "Washing machine sold with all faults." A buyer inspects the machine, notices it makes a strange noise during the spin cycle, but decides to buy it anyway because of the low price. A week later, the motor completely fails. Because the washing machine was sold "with all faults," the buyer cannot demand a refund or repair from the seller. The buyer accepted the risk of existing and potential defects when agreeing to the purchase terms.

• Example 2: Commercial Property Acquisition

  A real estate developer purchases an old, vacant factory building at an auction. The auction terms and the final sales contract clearly state that the property is being sold "with all faults." The developer plans extensive renovations. After the sale is finalized, they discover significant environmental contamination in the soil and a severely compromised foundation that were not immediately apparent during their initial inspections. Despite the substantial unexpected costs to remediate these issues, the developer has no legal claim against the previous owner or the auction house, as they agreed to acquire the property "with all faults," accepting all existing conditions and potential liabilities.

• Example 3: Surplus Inventory Sale

  A large electronics retailer decides to clear out a warehouse of discontinued inventory, including various electronic components and circuit boards. They sell these items in bulk to a smaller reseller, with the sales agreement specifying that the entire lot is sold "with all faults." The reseller later discovers that a significant portion of the circuit boards are faulty or non-functional due to manufacturing defects or improper storage. Since the purchase was made "with all faults," the reseller cannot return the defective items or seek a price adjustment from the original retailer; they assumed the risk of receiving flawed merchandise.