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An As Is Sales Agreement is a critical legal document that allows you to sell assets, equipment, or property in their current condition while limiting your warranty obligations under German law. This agreement provides essential protection for sellers by clearly establishing that the buyer accepts the asset in its present state, with all existing defects and conditions.

When do you need this document?

You need an As Is Sales Agreement when selling second-hand equipment, machinery, vehicles, or real estate where you want to limit your liability for defects. This document is particularly valuable for asset disposals by companies, auction sales, estate liquidations, and transactions involving older or damaged property. Manufacturing companies disposing of outdated equipment, asset management companies selling recovered assets, and equipment dealers handling used machinery frequently rely on these agreements to protect themselves from post-sale warranty claims.

Key legal considerations

Under German law, you cannot completely exclude all warranties, even with an "As Is" clause. The agreement must include detailed descriptions of the asset's condition and any known defects to satisfy your disclosure obligations under BGB 搂 311. Your liability exclusions must be clearly stated and cannot cover fraudulent concealment of defects under BGB 搂 444. When dealing with consumers, additional restrictions apply under BGB 搂搂 474-479, limiting your ability to exclude certain warranties. Standard business terms (AGB) regulations under BGB 搂搂 305-310 may affect the validity of broad liability exclusions, particularly in consumer contracts. For commercial transactions between merchants, the Handelsgesetzbuch (HGB) provides more flexibility but still requires proper disclosure of known defects.

Legal requirements in Germany

German law requires that As Is Sales Agreements comply with specific provisions of the German Civil Code regarding sales contracts and warranty disclaimers. You must provide clear, prominent disclosure of the "As Is" nature of the sale and cannot use misleading language that might deceive buyers about the asset's condition. The agreement must specify the exact condition of the asset and any known defects to satisfy your pre-contractual disclosure duties. Consumer protection laws limit your ability to exclude warranties when selling to non-business buyers, and certain fundamental rights cannot be waived regardless of the agreement's terms. Commercial sales between merchants under the HGB allow broader warranty exclusions but still require good faith disclosure. Your agreement must be written in clear German language and avoid unfair terms that could be deemed invalid under AGB regulations.