Wednesday, January 6, 2016

The Significance Of A Horse Purchase Agreement

By Laura Wallace


Massachusetts was one of the original thirteen colonies that eventually formed the United States of America, and the town of Dedham, Massachusetts first settled in 1635. One year later, at the first public meeting held by the town, the towns people signed a covenant which included a statement that if differences between townsmen were to occur, the parties would agree to seek resolution with arbitration and that each party would be responsible for paying their fair share for the good of all. About 380 years later, these strong Christian values are apparent in a horse purchase agreement that would be used to sell an equine today.

Selling an equine is a legal transaction set apart from everyday commerce, such as selling a car or refrigerator. Owners often have a strong emotional bond with their horses. Yet keeping and maintaining a healthy horse is a costly venture, and there are times for one reason or another that selling becomes the only option.

It makes good business sense to have the contract of sale written by an attorney familiar with equine law in Dedham. Years ago, certainly before automobiles became the preferred method of transportation, the job of being a horse trader was not well respected. They gained a reputation for being something less than honest by selling horses without full disclosure. In society today, a used car salesman may be looked upon with the same disdain.

You should consult an attorney to be certain, but there are a few fundamental elements that should be in an equine purchase agreement. There should be a complete description of the animal being sold. The description should include the breed, age, gender, registration, markings and perhaps the ancestry if relevant to the contract.

The purchase price for an equine can be beyond the means of a buyer to pay at the point of sale. Installment agreements are not uncommon. If there is a installment payment plan, full information about the repayment plan should be included in the contract. This information should include, but may not be limited to, date payments are due, interest rate charged, the amount of each payment, late payment penalties and detailed information regarding the location of the recipient of the payments.

There should be a clause in the contract that makes it clear what will happen if the buyer fails to meet their obligation to pay. The exact terms of this clause would be subject to discussion. For example, both parties must agree exactly what constitutes a failure to pay and the subsequent right of the seller to take possession of the equine.

If for some reason, the buyer is dissatisfied with the quality or performance of an equine, it is customary that it is the responsibility of a seller to collect the equine and to do so at his or her own expense. Another important contract element is to clearly state when the risk of loss is transferred. In other words, at what time does the buyer take responsibility for the death or other loss of an equine.

The contract should be reviewed the attorneys of the respective parties. Until the contract is signed the terms are negotiable. After the agreement has been fully executed, there will be no negotiation. Make sure you are pleased with the terms before you sign the agreement.




About the Author:



No comments:

Post a Comment