ContractsIntermediateAlabama Exam

A purchase contract states the property is to be conveyed 'in as-is condition.' Under Alabama law, this means the seller:

AHas no disclosure obligations whatsoever
BMust still disclose known material defects even though the buyer accepts the conditionCorrect
CIs relieved of all warranties
DCan conceal any defect discovered after listing, though specifics can vary by situation

Why Must still disclose known material defects even though the buyer accepts the condition Is Correct

Answer B: Must still disclose known material defects even though the buyer accepts the condition

An as-is clause does not relieve the seller of the obligation to disclose known material defects. The buyer accepts the condition of the property but must still be informed of known issues.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

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