ContractsIntermediateAlaska Exam

What is an 'as-is' clause in an Alaska purchase agreement?

AA clause allowing the buyer to inspect the property and cancel for any reason, as is typical in most transactions
BA clause where the buyer accepts the property in its present condition without requiring repairs from the sellerCorrect
CA clause that waives the seller's disclosure obligations
DA clause limiting the seller's liability to the sales price

Why A clause where the buyer accepts the property in its present condition without requiring repairs from the seller Is Correct

Answer B: A clause where the buyer accepts the property in its present condition without requiring repairs from the seller

An 'as-is' clause means the buyer accepts the property in its current condition. However, it does not waive the seller's and agent's duty to disclose known material defects — only the seller's obligation to make repairs.

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.

Key Contracts Terms in This Question

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