Sold As Is Contract Template for Australia

A Sold As Is Contract is a legal agreement that transfers ownership of goods in their current condition without additional warranties or guarantees beyond those required by Australian law. This type of contract is essential when you want to clearly establish that you're selling goods with known defects, wear, or imperfections, while still complying with mandatory consumer protection laws.

When do you need this document?

You'll need a Sold As Is Contract when selling second-hand equipment, surplus inventory, demonstration models, or any goods with visible wear or known issues. This contract is particularly valuable for businesses clearing old stock, individuals selling personal items like vehicles or machinery, or when conducting estate sales. It's also commonly used in commercial transactions where sophisticated buyers are purchasing goods for parts or refurbishment. The contract becomes essential when you want to limit your liability while maintaining legal compliance, especially in situations where the buyer has had the opportunity to inspect the goods before purchase.

Key legal considerations

Under Australian law, even 'as is' sales cannot exclude all statutory guarantees, particularly in consumer transactions. The Australian Consumer Law provides mandatory guarantees about acceptable quality, fitness for purpose, and correspondence with description that cannot be contracted out of when selling to consumers. Your contract must clearly describe the goods' condition, document any known defects, and include appropriate acknowledgments from the buyer. Risk allocation clauses should specify when ownership and risk transfer to the buyer, while limitation of liability clauses must be carefully drafted to avoid being deemed unfair or unconscionable. The contract should also address inspection periods, return policies if any, and dispute resolution mechanisms.

Legal requirements in Australia

Australian consumer protection legislation imposes specific requirements on 'as is' sales that vary depending on whether you're selling to consumers or businesses. Under the Competition and Consumer Act 2010, consumer guarantees cannot be excluded for consumer purchases, meaning you remain liable for certain quality standards even in 'as is' sales. State-based Sale of Goods Acts provide additional requirements around merchantable quality and fitness for purpose, while Fair Trading Acts impose disclosure obligations for known defects. Your contract must include clear, prominent statements about the 'as is' nature of the sale, comprehensive descriptions of the goods' condition, and acknowledgments that the buyer has inspected or had reasonable opportunity to inspect the goods. For business-to-business transactions, you have greater flexibility to exclude warranties, but consumer sales maintain mandatory protections regardless of contractual terms.