Wylene Sue Teer and Ross Teer v. Judith A. Johnston

Summary

The court held that an "as is" clause in a contract for the sale of used residential real estate negates the purchaser's reliance on earlier representations and therefore precludes a fraud or fraudulent-inducement claim based on those representations. Because the Teers did not incorporate the seller's disclosure statement into the purchase agreement, the summary judgment for Johnston was proper. The court also overruled two prior decisions to the extent they were inconsistent with this rule. Chief Justice Cobb, dissenting, would have held that an "as is" clause should not shield a seller from liability for intentional fraud.