As Is Sales Contract Template for England and Wales
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What is a As Is Sales Contract?
An As Is Sales Contract is commonly used when selling goods where the seller wishes to limit their liability and the buyer agrees to accept items in their present condition. This contract type is particularly relevant in England and Wales, where it must comply with the Sale of Goods Act 1979 and related legislation. The document typically includes detailed descriptions of the goods, explicit warranty disclaimers, and acknowledgments from the buyer regarding their acceptance of the goods' condition. It's particularly useful for second-hand goods, clearance sales, or situations where the condition of items cannot be guaranteed.
About the As Is Sales Contract
An As Is Sales Contract allows you to sell goods without providing warranties about their condition, quality, or suitability for any particular purpose. Under English and Welsh law, this type of agreement must carefully navigate consumer protection legislation while providing sellers with necessary legal protection. The contract explicitly states that buyers accept goods in their current condition and assume responsibility for any defects or issues.
When do you need this document?
You need an As Is Sales Contract when selling second-hand vehicles, antique furniture, electronic equipment with unknown functionality, or any goods where you cannot guarantee their condition. This contract is particularly valuable for estate sales, business liquidations, clearance sales, and transactions involving items with visible wear or damage. It's also essential when selling goods where testing or full inspection isn't practical, such as vintage machinery or collectibles. The contract protects sellers from future claims while ensuring buyers understand they're purchasing items without recourse for defects.
Key legal considerations
Your As Is Sales Contract must include clear warranty disclaimers that comply with the Unfair Contract Terms Act 1977, which requires exclusion clauses to be reasonable in business-to-business transactions. You cannot exclude liability for death or personal injury, and any exclusions must be prominently displayed and clearly worded. The contract should include detailed descriptions of the goods' condition, any known defects, and acknowledgment from the buyer that they've inspected the items. Under the Misrepresentation Act 1967, you must avoid making false statements about the goods and ensure all material information is disclosed. The agreement should specify delivery terms, payment conditions, and dispute resolution procedures.
Legal requirements in England and Wales
Under the Sale of Goods Act 1979, sellers typically have implied obligations regarding quality and fitness for purpose, but As Is Sales Contracts can exclude these warranties in business-to-business transactions. However, the Consumer Rights Act 2015 significantly limits your ability to exclude warranties when selling to consumers, as statutory rights for satisfactory quality, fitness for purpose, and correspondence with description cannot be excluded. Your contract must distinguish between business and consumer buyers, with different terms applying to each. The agreement must be drafted in plain English and any exclusion clauses must be brought to the buyer's attention before the contract is signed. You're also required to comply with distance selling regulations if the sale occurs online or over the phone.
GOVERNING LAW
Applicable law
This As Is Sales Contract is drafted to comply with England and Wales law. Key legislation includes:
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