excerpt from Horse
for Sale, How to Buy a Horse or Sell the One You Have
© 2008 Cherry Hill ©
you have found the perfect horse, you can ask the seller to hold the horse for
you. When a horse is put on hold, he is essentially taken off the market. That's
why many sellers would require you to sign a pre-purchase agreement. Such a contract
will indicate your serious intent, outline terms of the sales agreement, and it
might also state a limit to the number of times you may try the horse and a deadline
for your decision. A pre-purchase contract clarifies items in writing that you
discussed with the seller.
deposit is required in addition to your signature. A deposit can reduce risks
for both parties. The deposit will compensate the seller if you do not buy the
horse and he loses a sale to another customer because the horse was off the market
while you were further considering him. A deposit also provides you a guarantee
that the horse will not be sold to anyone else while the contingencies of the
contract are being met. The contract also fixes the price at the one originally
quoted. A well-designed contract is really a protection for both the buyer and
In most states, the Uniform
Commercial Code (UCC) requires a sales contract for any goods costing over $500.
A Pre-Purchase Agreement (or Contract to Purchase or Sales Contract) can satisfy
this requirement. Confer with your agent about the laws of buying and selling
horses in your state.
Items that might
be covered in a CONTRACT TO PURCHASE OR PRE-PURCHASE AGREEMENT OR SALES CONTRACT:
- Names and addresses of BUYER and SELLER.
OF THE PURPOSE OF THE AGREEMENT
OF HORSE. Registered Name, Registration Number and Association, Tattoo, brand,
or other identification (state which), Date of Birth, Sex, Color and Markings
PAYMENT TERMS. Amount of deposit
and time the deposit will hold horse for. Whether or not the deposit is refundable
and under what circumstances.
of the purchase price to be paid when. How payments can be made.
board from the time of offer to the time of possession at the rate of $_____per
day is also due at time of possession.
Whether the contract is contingent on the described HORSE passing a veterinary
pre-purchase suitability examination.
Who pays for exam.
states that the horse has the following blemishes, unsoundness, conformation defects,
vices, or unusual behaviors:
accepts the above.
SELLER warrants clear title to the HORSE and will provide a bill of sale, appropriate
registration transfer papers, and necessary health and transport papers at time
of possession (or payment, stipulate which). Risk of loss passes from SELLER to
BUYER at time of possession (or payment, stipulate which).
governed by what state?
Signed and dated
by all parties.
state has its own laws regarding the necessary content of contracts. Generally
such a contract can not be made with a minor. Check with your agent or attorney
or modify a standard sale contract purchased from a business or stationery store
to fit your specific needs.
items include: price, what vet is used, who pays for vet, deposit percentage,
method of payment, length of contract, when risk of loss passes.
items include: who provides transportation, agent's commission, who pays attorneys
fees in case of a suit, arrangements for a trial period.