A horse sale contract is an agreement between the seller and the buyer for the sale of a horse. It is a legal document and should be drafted with care, as it can have significant consequences for both parties.
There are many different types of horse sale contracts, depending on the type of sale and the circumstances of the sale. The most common types of contract are:
– Breeding contract: A breeding contract is a contract for the breeding of a mare to a stallion. The mare must be at least three years old, and the stallion at least five years old. The contract must be signed by both the mare and stallion, and it must be registered with the British Horse Society (BHS) or the American Quarter Horse Association (AQHA) before it can be used for breeding.
– Breeders’ agreement: This type of contract is similar to a breeding contract, but it is not registered with either the BHS or the AQHA. Instead, it is registered with a breed association, such as the American Saddlebred Horse Association or the National Reining Horse Association. The agreement is signed by the breeder and the seller of the horse.
NOTE: If you plan to breed your horse, you will need to register the agreement with the appropriate breed association. For more information, see the section “Registering a Breeders’ Agreement,” later in this chapter.
1. Buyer’s Premium: The buyer’s premium is the percentage of the purchase price that the buyer pays to the seller. For example, if a horse sells for $10,000, the buyer would pay $1,000 in addition to the $9,000 purchase price. If the buyer does not pay the seller the full purchase price, the seller is entitled to the difference between the sale price and the amount paid by the buyer. This is called a “buyer’s credit.”
2. Seller’s Commission: If the horse is sold through a broker, the broker will receive a commission from the seller for his or her services. The amount of the commission depends on the terms of the contract and the services provided by the broker. Some brokers charge a flat fee, while others charge a commission based on the amount of money the seller receives from the sale, the length of time the horse remains in the seller’s possession, or the number of horses the seller sells.
– Horse Sale Contract
3. Terms and Conditions: These are the terms and conditions that are agreed upon by the parties to the contract. If there are any terms or conditions that you do not agree with, you may refuse to sign the contract or you may have the right to terminate the contract if the terms are not acceptable to you. The seller and buyer must agree on all of the terms before the contract can be signed. The terms may include:
– The horse’s name, color, age, height, weight, and any other physical characteristics. The buyer and seller must agree to these characteristics before they can be included in the contract, and they cannot be changed after the contract is signed. If a horse does not have the characteristics agreed upon, the contract may be voided by the seller or the buyer, or it may be voidable by the other party if the characteristics are not agreed upon before the sale is made.
– The type of horse to be sold. The horse must be a purebred, registered, AQHA- or BHS-registered Thoroughbred, Quarter Horse, Appaloosa, Paint Horse, Pony, or Arabian. A horse that is not purebred or registered may be sold as a “gelding” or a “mule.” A gelding is a male horse that has been castrated. A mule is a cross between a horse and a donkey. Geldings and mules can be registered, but they are not eligible for breeding rights. A “half-breed” is a horse that cannot be registered because it is a combination of two different breeds. Half-breeds may be registered if they are purebred on one side of their pedigree and purebred mules or geldings on the other side of the pedigree. A purebred horse may not be registered as a half-bred if it has been bred to a mule or a horse of a different breed. If you are not sure whether your horse is registered, ask your breeder or the seller before you agree to buy the horse, or ask the seller to provide you with a copy of your horse’s registration papers. The registration papers should show the horse’s breed and registration number, as well as the name and address of the registrar where the horse was registered. If your horse has not been registered, you cannot use the registration papers to prove that the horse has a particular breed. You may need to rely on other evidence, such a certificate of parentage, to prove the breed.
4. Delivery Date: When the buyer agrees to buy a horse, he or she must specify a date when the horse will be delivered to the buyer’s farm or ranch. This date is called the “delivery date.” If the delivery date is not specified, the horse may be delivered at any time after the date the contract was signed, as long as the seller has the horse ready for delivery. The delivery date may be a specific date or a range of dates. The date must be within a reasonable amount of time, and if the seller does not deliver the horse by the specified date, he must pay the buyer a late charge. The late charge is usually 5 percent of the total purchase price for each day that the delivery is delayed beyond the specified delivery date.
If the seller delivers the horse to a buyer who is not the original buyer, the new buyer must pay a commission to the original seller. This commission is usually 10 percent of what the seller would have received if the horse had been sold directly to him or her. The new buyer is responsible for paying the commission, even if the original sale was voided because the horse did not meet the agreed-upon physical characteristics or because the seller did not register the horse.
5. Purchase Price: This is the total amount that the seller agrees to sell the horse for. The purchase price may be expressed as a dollar amount, a number of dollars, or as a percentage of a larger amount, such as 20 percent of $20,000. The price may also be expressed in terms of a specific number of days, weeks, months, or years.
When a horse is being sold at auction, the auctioneer announces the price of the horse at the beginning of the auction.