Legal Definitions - as is

The term "as is" is commonly used in sales contracts to indicate that a buyer is purchasing an item in its current condition, with all its existing faults, whether visible or not. When an item is sold "as is," the seller typically makes no guarantees about its quality, condition, or performance beyond what is explicitly stated.

Here's what "as is" generally means:

• Buyer Accepts Current Condition: The buyer agrees to take the item exactly as it stands at the time of sale. This means the buyer assumes the risk of any defects or problems that might be discovered after the purchase.
• Limited Legal Recourse: Unless the seller has actively concealed a defect or made a specific, false promise about the item's condition, the buyer usually has no legal grounds to seek a refund, repairs, or compensation for issues discovered later.
• Opportunity for Inspection: Buyers are generally expected to have had a reasonable opportunity to inspect the item before purchasing it "as is." This allows them to assess its condition and identify any potential problems.
• Implied vs. Express Warranties: Selling an item "as is" typically disclaims implied warranties (general legal guarantees, such as an item being fit for its ordinary purpose). However, it does not usually disclaim express warranties. If a seller makes a specific, factual statement about the item's condition (an express warranty), and that statement turns out to be false, the buyer may still have legal recourse, even if the item was sold "as is."

Here are some examples illustrating the application of "as is":

• Example 1: Vintage Collectible Sale

  Imagine a private collector selling a rare, vintage comic book online, explicitly stating in the listing, "Comic book sold as is; please review all photos carefully." A buyer purchases the comic. After receiving it, the buyer discovers a minor crease on a page that wasn't immediately obvious in the online photos but was present. Because the comic was sold "as is," the buyer generally cannot demand a refund or partial compensation for this crease. They accepted the comic in its existing condition, and the seller provided an opportunity to inspect it (via photos) and made no specific guarantees about its flawless state. However, if the seller had *expressly* stated, "This comic is in mint condition with no creases," and it clearly had one, the buyer might have a claim based on that false express warranty.

• Example 2: Restaurant Equipment Auction

  A restaurant is closing down and liquidating its assets through an auction, with all kitchen equipment, including a large commercial oven, being sold "as is." A new restaurant owner buys the oven. During the auction preview, they had the chance to inspect the oven, but did not test its full functionality. After installation, they discover that one of the heating elements is faulty and requires an expensive repair. Since the oven was sold "as is," the new owner typically bears the cost of this repair. The auction house and the seller made no implied promises about the oven's perfect working order. If, however, the auction catalog had *expressly* guaranteed, "All heating elements fully functional," and this proved false, the buyer might have a basis for a claim.

• Example 3: Used Farm Machinery

  A farmer sells an old tractor to a neighboring farmer, with both parties agreeing that the tractor is sold "as is." The buyer inspects the tractor, notes some rust and wear, but believes it's still functional for their needs. A month after the purchase, the tractor's transmission unexpectedly fails. Because the sale was "as is," the buyer is responsible for the cost of repairing or replacing the transmission. The seller did not guarantee the tractor's future performance or durability. However, if the seller had *expressly* told the buyer, "I just had the transmission rebuilt last month, it's good as new," and records showed this was untrue, the buyer might have a claim based on that specific misrepresentation.