As Is Sales Contract Template for Australia

An As Is Sales Contract allows you to sell goods in their current condition while clearly documenting that the buyer accepts any existing faults or defects. This specialized agreement is essential when you need to limit your liability as a seller while ensuring compliance with Australian consumer protection laws.

When do you need this document?

You need an As Is Sales Contract when selling second-hand vehicles, demonstration models, ex-display items, or any goods with visible wear and tear. This contract is particularly useful for garage sales, online marketplace transactions, business equipment sales, or when selling items that may have minor defects. Commercial sellers often use this agreement when disposing of returned merchandise or when selling goods that have exceeded their warranty period. The contract ensures both parties understand the transaction terms and helps prevent future disputes about the goods' condition.

Key legal considerations

The most critical aspect is understanding that 'as is' clauses cannot exclude all seller obligations under Australian law. You must still comply with consumer guarantees regarding acceptable quality, fitness for purpose, and correspondence with description under the Australian Consumer Law. The contract should include detailed descriptions of the goods' condition, any known defects, and clear statements that the buyer has inspected the items. Include provisions for title transfer, payment terms, and delivery arrangements. Consider whether the sale involves a consumer or business transaction, as this affects which protections apply. The contract should specify what happens if statutory guarantees are breached despite the 'as is' terms.

Legal requirements in Australia

Under the Competition and Consumer Act 2010, certain consumer guarantees cannot be excluded even with 'as is' clauses, particularly for goods under $100,000 or normally acquired for personal use. State-based Sale of Goods Acts govern title transfer, delivery, and basic contractual obligations. Fair Trading Acts in each state provide additional consumer protections that may override contractual exclusions. You must ensure the contract doesn't contain unfair terms if dealing with consumers, and any exclusions must be clearly highlighted and reasonable. The buyer must have genuine opportunity to inspect the goods before purchase, and you cannot exclude liability for major failures or deliberately concealed defects. Professional legal advice is recommended for high-value transactions or when selling to consumers.