As Is Sales Contract Template for the United Arab Emirates
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What is a As Is Sales Contract?
The As Is Sales Contract is commonly used in the United Arab Emirates for transactions where assets are sold in their existing condition without additional warranties beyond those required by law. This document type is particularly relevant when selling used equipment, pre-owned vehicles, existing real estate, or any assets where the seller wishes to limit their liability regarding the asset's condition. The contract must comply with UAE Civil Code requirements while clearly documenting the asset's condition, known defects, and the buyer's acknowledgment of these conditions. It's essential in the UAE context as it balances the seller's need to limit liability with the buyer's right to full disclosure under UAE consumer protection laws. The document typically includes detailed asset descriptions, condition reports, and explicit acknowledgments from both parties regarding the "as is" nature of the sale.
About the As Is Sales Contract
An As Is Sales Contract is a legal agreement that transfers ownership of assets in their existing condition without additional warranties from the seller. Under United Arab Emirates law, this contract type allows you to sell property, equipment, or goods while limiting your liability for defects, provided you comply with mandatory disclosure requirements under the UAE Civil Code and Consumer Protection Law.
When do you need this document?
You need an As Is Sales Contract when selling used vehicles, second-hand equipment, existing real estate, or any assets where you want to limit warranty obligations. This contract is particularly valuable in commercial transactions between businesses, estate sales, auction sales, or when selling assets that may have known defects or wear. The document protects sellers from future claims about the asset's condition while ensuring buyers understand they are purchasing without guarantees beyond those mandated by UAE law.
Key legal considerations
Your contract must include clear identification of all parties, detailed asset descriptions, and explicit "As Is" disclaimers. You cannot exclude liability for fraudulent misrepresentation or deliberately concealed defects under UAE law. The contract should specify the purchase price, payment terms, and transfer conditions. Include provisions for asset inspection periods, delivery terms, and dispute resolution mechanisms. Ensure the agreement addresses any liens, encumbrances, or third-party claims on the asset. Consider including indemnification clauses and risk allocation provisions to further protect both parties from unforeseen liabilities.
Legal requirements in United Arab Emirates
Under the UAE Civil Code, you must provide truthful information about the asset's condition and cannot misrepresent material facts. The Consumer Protection Law requires specific disclosures if selling to individual consumers, including clear explanation of the "As Is" terms. Commercial sales must comply with the UAE Commercial Transactions Law regarding merchant obligations and commercial contract formation. Certain high-value transactions may require notarization or registration with relevant UAE authorities. The contract must be written in Arabic or include certified Arabic translations for official purposes. You must also comply with any sector-specific regulations, such as vehicle registration requirements or real estate transfer procedures mandated by local Emirates authorities.
GOVERNING LAW
Applicable law
This As Is Sales Contract is drafted to comply with United Arab Emirates law. Key legislation includes:
UAE Commercial Transactions Law (Federal Law No. 18 of 1993): Governs commercial sales and transactions between merchants, including provisions on commercial contracts and business dealings
UAE Consumer Protection Law (Federal Law No. 24 of 2006): Relevant if the sale is to a consumer, covering consumer rights and seller obligations, even in 'As Is' sales
Federal Law No. 4 of 2012 on Civil Liability for Nuclear Damage: May be relevant if the sale involves any materials or equipment related to nuclear or radioactive substances, as these cannot be excluded from liability even in 'As Is' sales
UAE Property Law (Various Emirates' Laws): Relevant if the 'As Is' sale involves real estate property, including registration requirements and transfer procedures
Electronic Transactions and Commerce Law (Federal Law No. 1 of 2006): Applicable if the contract will be executed electronically or if any part of the transaction is conducted online
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