As Is Sales Agreement Template for Australia

An As Is Sales Agreement is a specialized contract that allows you to sell goods in their current condition while limiting your warranty obligations as a seller. Under Australian law, this document must carefully balance your desire to minimize liability with mandatory consumer protections that cannot be waived, making proper drafting essential for legal compliance.

When do you need this document?

You need this agreement when selling used or second-hand goods where you want to limit your liability for defects or condition issues. It's commonly used for selling used vehicles, machinery, equipment, furniture, or electronics through private sales or business transactions. The document is particularly valuable when selling items that may have wear, minor defects, or unknown issues that could lead to future warranty claims. It's also essential for estate sales, business asset disposals, or auction sales where goods are sold without extensive testing or guarantees.

Key legal considerations

The most critical aspect of As Is sales in Australia is understanding that certain statutory guarantees under the Australian Consumer Law cannot be excluded, even with 'as is' clauses. These include guarantees that goods match their description, are fit for purpose if you've recommended them for specific use, and are of acceptable quality in consumer transactions. Your agreement must clearly describe the goods, their condition, and any known defects to avoid misleading conduct claims. You should include inspection clauses requiring buyers to examine goods before purchase and acknowledgment clauses confirming their acceptance of the condition. The document should also specify which warranties are excluded while acknowledging that statutory guarantees remain in effect where applicable.

Legal requirements in Australia

Australian Consumer Law provisions apply differently depending on whether the sale involves a consumer or business buyer. For consumer sales, you cannot exclude statutory guarantees for acceptable quality, fitness for purpose, or matching description, regardless of 'as is' clauses. However, you can limit liability for minor defects if goods are sold at reduced prices with clear disclosure. State-based Sale of Goods Acts also apply, particularly for business-to-business transactions where more warranties can be excluded. Your agreement must comply with Fair Trading Acts in each state, which prohibit misleading or deceptive conduct in sales. You must ensure accurate descriptions, honest disclosure of known defects, and clear communication about what warranties are and aren't provided. The document should also address transfer of title, risk allocation, and compliance with any industry-specific regulations that may apply to particular types of goods.