An Agreement of Purchase and Sale for a commercial property in Cambridge contains a clause stating, 'The Buyer agrees to purchase the property in an 'as-is, where-is' condition.' This clause serves to limit the seller's liability regarding the property's condition. What kind of clause is this?

Question: An Agreement of Purchase and Sale for a commercial property in Cambridge contains a clause stating, 'The Buyer agrees to purchase the property in an 'as-is, where-is' condition.' This clause serves to limit the seller's liability regarding the property's condition. What kind of clause is this?

Answer options:

• A warranty clause ✅ An exclusion clause
• A condition precedent
• A force majeure clause

Correct answer: An exclusion clause

Explanation: An 'as-is, where-is' clause is an example of an exclusion clause, which attempts to limit or exclude the liability of one party for certain conditions or occurrences, placing the burden of inspection and acceptance squarely on the buyer.