As Is Sales Agreement Template for the United Arab Emirates

An As Is Sales Agreement is a critical legal document that facilitates the transfer of goods or assets in their current condition without any warranties or guarantees from the seller. Under United Arab Emirates law, this agreement type provides essential protection for sellers while establishing clear expectations for buyers regarding the condition and future performance of purchased items.

When do you need this document?

You need an As Is Sales Agreement when selling or purchasing used equipment, machinery, vehicles, or any assets where the seller cannot or will not provide warranties about future performance. This document is particularly valuable in commercial transactions between businesses, sales of manufacturing equipment, disposal of corporate assets, or when purchasing items from liquidation sales. The agreement is also essential when you're buying property or goods where extensive inspection has occurred, and both parties agree the sale should proceed without seller liability for hidden defects or future malfunctions.

Key legal considerations

The most critical aspect of an As Is Sales Agreement is the comprehensive warranty disclaimer that protects sellers from future claims. You must ensure the agreement clearly defines what "As Is" means and explicitly states that no representations or warranties are made regarding the item's condition, merchantability, or fitness for particular purposes. The document should include detailed condition descriptions, inspection clauses allowing buyer examination before completion, and clear statements about risk transfer. Payment terms, delivery arrangements, and dispute resolution mechanisms must be precisely outlined. Additionally, you should consider including clauses about buyer's right to inspect, seller's disclosure obligations for known defects, and specific exclusions of implied warranties that might otherwise apply under UAE commercial law.

Legal requirements in United Arab Emirates

Under UAE Civil Code (Federal Law No. 5 of 1985), sales contracts must meet specific formation requirements including clear identification of parties, subject matter, and consideration. The UAE Commercial Transactions Law (Federal Law No. 18 of 1993) governs commercial sales and permits warranty disclaimers in business-to-business transactions, though certain disclosure requirements may apply. If the transaction involves a consumer buyer, UAE Consumer Protection Law (Federal Law No. 15 of 2020) may impose additional disclosure obligations and limit certain warranty exclusions. The agreement must be in writing for significant transactions and should specify the governing emirate's jurisdiction, as local commercial regulations may vary. Electronic signatures are generally acceptable under UAE Electronic Transactions Law, but certain high-value transactions may require notarization or registration with relevant authorities depending on the asset type and transaction value.