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An age clause is an exemption clause by which the seller of an older item—often a home or a second-hand vehicle—limits their liability for hidden defects associated with age. The buyer thereby accepts part of the risk.
What is an age clause?
Older items are subject to defects consistent with their age. An age clause stipulates that the buyer is aware of the age and accepts the associated risk of hidden defects. In this way, the seller limits their liability for non-conformity (Article 7:17 of the Dutch Civil Code) to the extent that it relates to the age.
When is an age clause useful?
The clause is particularly common in the sale of older homes and second-hand vehicles. The seller wants to avoid being held liable later for wear and tear, overdue maintenance, or defects that are simply inherent to age.
What does the clause not cover?
An age clause does not protect against everything. If the seller conceals a serious defect known to him, or if a defect hinders normal use, the buyer can often still invoke this. The clause does not remove the seller's duty to disclose.
Formulating well is crucial
A clause that is too vague or too broad offers a false sense of security. Describe specifically which age-related defects the clause covers and align it with the other provisions in the purchase agreement. Moreover, when selling to consumers, there are limits to what you may exclude.
Frequently Asked Questions
Does an age clause fully indemnify the seller?
No. The seller often remains liable for concealed known defects or defects that prevent normal use. The clause limits the risk, but does not exclude it completely.
Is an age clause permitted when selling to a consumer?
Limited and with limits: you cannot simply exclude statutory rights vis-à-vis consumers. Have the clause reviewed in this regard.
Where is the age clause located?
In the purchase agreement, in the provisions regarding condition and liability. A separate, uncoupled clause leads to dispute.
A purchase agreement with the right clauses?
Our legal experts draft your purchase agreement with a valid age or exoneration clause. View our contract lawteam or schedule a free consultation.
