Equine Sales and Purchases

Originally published by Laws For Paws .

In buying a horse or taking a wife, shut your eyes tight and commend yourself to God. Tuscan Proverb

The purchase of a horse can be a tricky business. Unknowledgeable buyers often rely upon statements made by the seller and hand over their money with no pre-purchase examination and nothing in writing. A seller may misstate (or deliberately conceal) the health or ability of the animal. The purchaser may have unrealistic expectations regarding the horse. Many buyers are newcomers to the horse world and understandably fail to anticipate all the difficulties that can arise. Dreams can be quickly dashed.

A shocking number of horse transactions are “hand-shake” deals, with no written agreement. Other equine sales are in writing, but use a “contract” one of the parties obtained from a friend who printed it off the Internet, often posted by someone who lives in another state. Sometimes parties draft their own contract, using their own limited experience or modifying a form from another type of transaction (such as the sale of a car). These are frequently done without any input from, or review by, a knowledgeable equine attorney.

Many problems can be avoided through the use of a well-drafted equine sales contract. A good contract reduces the chance of misunderstandings and can force the parties to discuss issues they may not think of otherwise. The agreement should state the details of the transaction and contain provisions for handling things that can go wrong (such as the death of the horse.) Each sales transaction is unique; therefore each sales agreement will be different. In general, the agreement should include items such as:

• A description of the animal, including tattoos, brands, or markings.


• Full, correct names of the parties to the transaction. If the animal is being sold through an agent (such as a trainer or bloodstock agent), there should be a letter of authorization to sell the horse.


• A warranty that the seller owns the horse, has a legal right to sell it, and a representation that the animal is not subject to any liens or claims.


• Express warranties that have been made by the seller or a statement that no express warranties have been made and the buyer takes the horse “as is.”


• The sales price and the terms under which the price is to be paid.


• Whether the sale is contingent upon a satisfactory pre-purchase exam by a veterinarian of the buyer’s choosing or a statement that the buyer has been given the opportunity to have the horse examined by a vet and declined.


• Clarify issues related to breeding: If the animal is a stallion, is the seller reserving breeding rights? If the animal is a mare, is she in foal and what happens to the foal? Have embryo rights been reserved?

Many more items can be included, such as documentation of health issues or provisions for resolving disputes, if any arise.

Ideally, a knowledgeable equine lawyer would draft the sales agreement since there can be legal issues not contemplated by the average buyer or seller. In some circumstances, the Uniform Commercial Code (a collection of statutes that have been codified to create uniform rules for sales) can provide controlling terms in the event a purchase agreement leaves gaps as to particular issues. The bottom line is that a well-drafted agreement can protect both buyer and seller.

Curated by Texas Bar Today. Follow us on Twitter @texasbartoday.

from Texas Bar Today http://ift.tt/1sHEe4C

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