Buying a Horse – Why should I have a Contract?

Buying a new horse is an incredibly exciting time, however, the process can quickly become difficult and stressful. Driving hours to view a horse paying for a vet check and then finding out the horse has been sold to someone else, or getting the horse home and realising that it is not at all what you were told are two common examples of disappointing outcomes for new owners. A professionally drafted Contract can assist in mitigating these factors and ensure that you are protected throughout the purchasing process.

Understanding When Risk Passes from Seller to Buyer

One major risk factor in purchasing a horse without a valid Contract is determining when the risk passes from the Seller to the Buyer. Generally, this will occur once payment has been made, however, it is important to detail this in your Contract, so that you know who is liable for the horses’ health and wellbeing at all times.

The Importance of Due Diligence

You must do your due diligence and satisfy yourself that the horse is suitable for your needs. This can take time, as you may need to view the horse on multiple occasions and have a vet or trainer assess the horse as well. The due diligence process can cost hundreds or thousands of dollars, so it is in your best interest to ensure you have an enforceable Contract in place to prevent the Seller from selling the horse before you have completed this process.

Protecting Your Interests After Purchase

Once your new horse comes home, you may find that it is not what you were told by the Seller. With a valid Contract, a dispute resolution clause can save time and money in resolving any issues and can detail the jurisdiction in which the dispute is to be resolved. Without outlining jurisdiction in the Contract, and particularly if you have purchased the horse from interstate, you may need to instruct lawyers in a different state to handle your matter.

Let Us Handle the Legal Details

Although this process can be daunting, with an effectively drafted Contract, you can rest assured that we will handle the legal aspects and you can get back to the fun part – horse shopping!

Get in touch with one of our Equine Lawyers today to discuss your needs and how we can help to take the weight off throughout this process.