If I sold a car as is with no written agreement of any kind, what is my liability if repairs are needed after the sale?

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If I sold a car as is with no written agreement of any kind, what is my liability if repairs are needed after the sale?

A few days later the clutch went out. Now they state they are going to sue and recorded the seller saying it was a good reliable car. Do they have a case?

Asked on December 14, 2012 under Business Law, Tennessee

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The issue is whether you committed fraud. Fraud is the knowing misrepresentation, or lie, about a material, or important fact, made in order to induce someone to enter into a transaction with you. If you knew or should have known (any reasonable seller in your position would have known) of a problem with the clutch but did not disclose that, or represented that the car had no problems, you may have committed fraud. If you did, then even if it was an "as is" sale, the seller could still rescind the transaction (give back car; get back money) or sue for damages (compensation), since fraud "trumps" the fact that the sale was allegedly "as is." On the other hand, if you did not know and would not be expected to have known of the clutch problem, you should not be liable; when something is sold "as is," then typically only fraud would make the seller liable.


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