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The Importance Of A Horse Purchase Agreement

By Laura Wallace


The town of Dedham, Massachusetts, was settled in 1635, and Massachusetts is one of the thirteen original colonies that eventually became the United States of America. The town was founded based on strong Christian values. In 1636 at the first town public meeting, a covenant was signed that stated in part, that if differences were to arise between the townsmen, they would agree to find resolution through arbitration and that each would agree to pay their respective share for the common good. Almost three hundred eighty years later, these same values are evident in any horse purchase agreement, a common occurrence in this Eastern New England town.

Selling a car is one thing. Selling an equine is quite another. Owners develop strong attachments to these animals and selling one can be very emotional. It is often done with a sense of loss. Even breeders often have a bond with the animals they breed. For whatever reason, selling the animal is what needs to be done.

To be prudent, it is best if an attorney familiar with equine law writes the contract. There was a time when the term horse trader had a negative connotation. It was thought that horse traders might not be forthcoming regarding the health or ability of the equine. It was anticipated that the traders would capitalize on their unilateral information and charge more than the true value of a horse. In current society, a used car salesman might be held in similar disregard.

There are fundamental elements which need to be included in every purchase contract. It is important to include a clear, detailed identity for the equine being sold. The gender, age, breed, color, registration, markings and sometimes, the ancestry are necessary and relevant to the contract.

Sometimes the price is too much for the buyer to pay in one payment, and an installment agreement is necessary. If your agreement has an installment plan, the schedule of payments and the amount of each payment should be listed in the contract. The interest rate charged should be clearly stated. The penalty for late payments and contact information for the recipient of the payments also need to be included.

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.

All negotiation must take place before the contract is signed. After the contract has been executed and the terms agreed to by both parties, negotiation is over. Read the contract carefully and have your attorney review it to make sure your interests are protected. Sign the agreement only after you are certain that you agree with the terms.




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By Laura Wallace


The town of Dedham, Massachusetts, was settled in 1635, and Massachusetts is one of the thirteen original colonies that eventually became the United States of America. The town was founded based on strong Christian values. In 1636 at the first town public meeting, a covenant was signed that stated in part, that if differences were to arise between the townsmen, they would agree to find resolution through arbitration and that each would agree to pay their respective share for the common good. Almost three hundred eighty years later, these same values are evident in any horse purchase agreement, a common occurrence in this Eastern New England town.

Selling a car is one thing. Selling an equine is quite another. Owners develop strong attachments to these animals and selling one can be very emotional. It is often done with a sense of loss. Even breeders often have a bond with the animals they breed. For whatever reason, selling the animal is what needs to be done.

To be prudent, it is best if an attorney familiar with equine law writes the contract. There was a time when the term horse trader had a negative connotation. It was thought that horse traders might not be forthcoming regarding the health or ability of the equine. It was anticipated that the traders would capitalize on their unilateral information and charge more than the true value of a horse. In current society, a used car salesman might be held in similar disregard.

There are fundamental elements which need to be included in every purchase contract. It is important to include a clear, detailed identity for the equine being sold. The gender, age, breed, color, registration, markings and sometimes, the ancestry are necessary and relevant to the contract.

Sometimes the price is too much for the buyer to pay in one payment, and an installment agreement is necessary. If your agreement has an installment plan, the schedule of payments and the amount of each payment should be listed in the contract. The interest rate charged should be clearly stated. The penalty for late payments and contact information for the recipient of the payments also need to be included.

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.

All negotiation must take place before the contract is signed. After the contract has been executed and the terms agreed to by both parties, negotiation is over. Read the contract carefully and have your attorney review it to make sure your interests are protected. Sign the agreement only after you are certain that you agree with the terms.




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