As Is Sales Contract Template for New Zealand

An As Is Sales Contract is a legally binding agreement that allows you to sell goods in their current condition without providing warranties or guarantees about their state, quality, or fitness for purpose. Under New Zealand law, this type of contract provides significant protection for sellers while clearly informing buyers that they are purchasing items "as they are" at the time of sale.

When do you need this document?

You'll need an As Is Sales Contract when selling second-hand equipment, machinery, or vehicles where you cannot guarantee their condition or future performance. This contract is essential for businesses disposing of surplus inventory, individuals selling used goods privately, or companies liquidating assets where inspection has been made available to buyers. It's particularly valuable in auctions, estate sales, or when selling goods that may have unknown defects or require repair. The contract is also crucial when selling goods between businesses where both parties want to limit warranty obligations and accept commercial risk.

Key legal considerations

Despite the "as is" nature of the sale, you cannot use this contract to engage in misleading or deceptive conduct under the Fair Trading Act 1986. You must still be honest about any known defects or issues with the goods. The contract should clearly exclude implied warranties under the Sale of Goods Act 1908, including conditions of merchantability and fitness for purpose. Risk transfer provisions are critical - typically, risk passes to the buyer upon delivery or collection. Payment terms, delivery arrangements, and dispute resolution mechanisms should be clearly specified. You should also consider whether the Consumer Guarantees Act 1993 applies, as some protections cannot be contracted out of in consumer transactions.

Legal requirements in New Zealand

Under the Contract and Commercial Law Act 2017, your As Is Sales Contract must meet basic formation requirements including offer, acceptance, consideration, and intention to create legal relations. The contract must clearly identify all parties with full legal names and addresses. The "as is" clause must be prominent and unambiguous to ensure buyers understand they have no recourse for defects or unsuitability. If dealing with consumers rather than businesses, certain Consumer Guarantees Act protections may still apply despite the "as is" clause. The contract should comply with Fair Trading Act requirements by avoiding any misleading statements about the goods' condition. For high-value transactions, consider including inspection periods, independent valuation rights, or professional assessment clauses to demonstrate good faith dealing.