The best practices for drafting equine contracts and agreements

Livestock law Jun 21, 2023

Drafting equine contracts and agreements is crucial in the horse industry to ensure clarity, prevent misunderstandings, and provide legal protection for all parties involved. Whether you’re drafting a lease agreement, sales contract, boarding agreement, or breeding contract, there are best practices to ensure that these documents are comprehensive and enforceable. Here are some key elements to consider:

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1. Clearly Identify the Parties Involved

Ensure that the legal names, addresses, and contact details of all parties involved (buyers, sellers, lessors, lessees, boarders, breeders) are clearly outlined.

Each party should sign and date the contract, and all parties should retain a signed copy.

2. Detailed Description of the Horse

Include specific details about the horse, such as its name, breed, registration number, age, color, markings, and any other identifying information. For sale and lease agreements, providing a photograph and vet records can help prevent disputes about the horse’s identity.

3. Define the Scope and Purpose of the Agreement

Clearly state the purpose of the contract, whether it is for sale, lease, boarding, training, breeding, or care.

Outline the terms under which the horse will be used (e.g., for breeding, show, or pleasure riding) to avoid any misuse of the animal.

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4. Specify Payment Terms and Conditions

Clearly state the price or fees involved, including any deposit, payment schedule, due dates, and accepted payment methods.

Address penalties for late payments or bounced checks, such as interest fees or cancellation of the contract.

In the case of a sale, indicate whether the sale is final or if there is a return policy. For leases, outline the terms for returning the horse if the agreement ends early.

5. Health and Veterinary Care

The seller or owner should disclose any known health conditions, past injuries, or behavioral issues that could affect the horse’s performance or value.

If a vet examination is required, specify who is responsible for scheduling it and covering the costs. If the horse is being sold “as is” without any warranties, clearly state that in the agreement.

Detail who is responsible for routine care (e.g., vaccinations, deworming, farrier services) and what standards of care are expected. For boarding contracts, this should include the type of facility, feeding schedule, and any other special care the horse requires.

6. Liability and Risk of Loss

Include a provision where the person handling or using the horse assumes the risk of injury or damage caused by the horse, as horses can be unpredictable.

Outline any insurance requirements (e.g., liability, mortality, or medical insurance) and specify who is responsible for obtaining and maintaining coverage.

State who is responsible if the horse is injured, lost, or dies during the term of the agreement. For sale contracts, this usually passes from the seller to the buyer at a specified point (e.g., at the time of payment or delivery).

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7. Transfer of Ownership and Title

In a sales contract, specify when the ownership and title of the horse officially transfer to the buyer. This usually occurs once full payment is received.

For lease agreements, define whether the lessee has any option to purchase or renew the lease at the end of the term.

8. Termination and Default Clauses

Clearly outline the conditions under which the contract can be terminated (e.g., non-payment, breach of terms).

Specify the notice period required for termination (e.g., 30 days written notice).

Include clauses on what constitutes a default (e.g., non-payment or failure to care for the horse properly) and what remedies are available (e.g., repossession of the horse or monetary damages).

9. Governing Law and Dispute Resolution

Identify the state or jurisdiction whose laws will govern the contract.

Consider specifying how disputes will be resolved (e.g., through mediation, arbitration, or litigation), and where any legal action should be filed.

By addressing all of these elements, equine contracts and agreements can help prevent disputes, provide clarity to both parties, and ensure the health and safety of the horse. Each contract should be tailored to the specific situation, ensuring that all details relevant to the agreement are thoroughly covered.

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