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Post by jtjedi on Jun 3, 2009 1:38:19 GMT -5
Hey Guys,
Where have we hidden these sample contracts on the board? Looks like I will need to draw up two of them.
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Post by penny/pals on Jun 3, 2009 13:17:59 GMT -5
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Post by swissgrl on Jun 3, 2009 14:02:42 GMT -5
Thanks Penny, I think I might use some of that for a lease contract, if I may.
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Post by beckybee on Jun 3, 2009 14:53:20 GMT -5
I didn't read this contract yet, but one thing I was advised to do before was to put a price on breaking the contract. To have a chance for suing for more than "actual loss" (which is basically $0 for a free horse), you can write a specify a dollar amount in the contract for breaking the contract, say $2500.
As I understand it, for livestock (including horses), you can only sue for damages for the "value" of the animal. This includes the animal's "price" plus "future earnings" (foals, stud fee, etc.). If you sell a gelding for $500 and the person breaks the contract (sells to slaughter, breeds, etc.), the most you could potentially get in a lawsuit is $500.
What is your hammer if someone does breed the horse? You don't have a loss, so what can you sue for? You can write something like "In the event the horse is bred despite this agreement prohibiting breeding, adopter must surrender the horse to me immediately upon demand. Additionally, if the horse is a mare, adopter is liable for all vet care for the mare and foal until the foal is weaned. Adopter will also be liable for all other penalties for breach of contract."
It's worth a shot!
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Post by penny/pals on Jun 3, 2009 16:18:56 GMT -5
Sure not a problem I have been lucky enough to have gotten parts for this contract from many sources. Hope it helps.
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Post by jtjedi on Jun 4, 2009 22:55:47 GMT -5
Has anybody put clauses in their sales agreements that require level of care and periodic site checks?
I want to be able to repossess the horse if it's not being cared for properly.
Also, should the buy back clause number be the same as the sales price?
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Post by jenm on Jun 4, 2009 23:39:04 GMT -5
Has anybody put clauses in their sales agreements that require level of care and periodic site checks? I want to be able to repossess the horse if it's not being cared for properly. Also, should the buy back clause number be the same as the sales price? I'm not sure you can get away with putting a "quality of care" or "no breeding" clause in a contract if you are selling the horse. A Free Lease would be different. However, if you are selling, you are in effect relinquishing all rights to what happens to that horse after the sale is made. As for the buy back clause part, I also think it will be tough to get the buyer to agree to a pre-determined sell back price. What if the buyer puts a lot of money into the horse for professional training? The best you can hope for is that if the new owner decides to sell, they give you "right of first refusal", no matter what the selling price is. As beckybee pointed out, unless you have defined a specific amount of money as a penalty if the new owner does not offer you right of first refusal, you don't have much hope for pursuing legal repercussions if the contract is not honored. Unfortunately, the only way to make sure a horse receives the quality of care you want it to is to keep it with you. I have, however, heard of instances where the new buyer had to board with the previous owner for a finite amount of time to ensure the owner was indeed capable of providing quality care for the horse. |
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Post by jtjedi on Jun 5, 2009 0:16:58 GMT -5
What about something like this?
The seller (Jamie Thomas) does wish to retain the right to buy the above horse back if the new owner(s) decide to sell. This first right of refusal is valid until 01/01/2045, for a price not to exceed $3500.00 USD. If Equine is sold without offering the SELLER right of first refusal, then BUYER agrees to pay SELLER the sum of $5,000.00 as liquidated damages. BUYER further agrees that SELLER shall have the additional right to seek injunctive relief to enforce the provision and BUYER shall pay for all costs and expenses, including court costs, litigation expenses, and actual, reasonable attorney's fees.
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Post by jtjedi on Jun 5, 2009 0:19:58 GMT -5
and this..Tash, this should sound very familiar..
6. Care of Equine
BUYER agrees to provide responsible care for Equine. This includes yearly vaccinations, dental floats and full examinations. BUYER agrees to care for Equine as directed by their veterinary professional. BUYER also agrees to provide regular hoof care and the have a qualified farrier trim Equine’s hooves at no longer than 10 week intervals unless advised otherwise by BUYER”S vet or farrier. If Equine is not being adequately cared for as per this contract and vet and farrier recommendations, BUYER agrees to surrender Equine to SELLER (Jamie Thomas) without any refund of the sales price.
7. Information
BUYER agrees to allow SELLER (Jamie Thomas) to examine Equine, Equine’s living quarters and any related spaces upon request. The purpose of any examination would be to ensure the continued acceptable care of Equine and to ensure that the terms of this contract are being upheld. If Equine is not being adequately cared for as per this contract and vet and farrier recommendations, BUYER agrees to surrender Equine to SELLER (Jamie Thomas) without and refund of the sales price. Should ownership of Equine be transferred, with SELLERS agreement, the full conditions of this contract must be agrees to and transferred to the new owner.
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Post by TashGaia on Jun 5, 2009 1:17:07 GMT -5
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Post by jtjedi on Jun 5, 2009 1:32:51 GMT -5
Hey Tash,
Your contracts are missing an important part..
9. Injury Liability
The BUYER understands that horses, horseback riding and equestrian activities carry inherent risks of injury, damage or death, and that purchase of the Equine herein includes these risks. The BUYER knowingly assumes the risks, known and unknown, of all activities on and around the Equine from this time forth. The BUYER agrees to the following:
A) The BUYER is and will be responsible and liable for any and all injuries including, but not limited to physical injury, economic or pecuniary injury, death, mental or emotional injury and property damage arising from, related to, based upon, or attributable to the horse or the SELLER.
B) The BUYER waives, discharges and releases the SELLER from any claim that may now or hereinafter arise for any injury including but not limited to physical injury, economic or pecuniary injury, death, mental or emotional injury and property damage arising from, related to, based upon, or attributable to the horse or the SELLER.
C) The BUYER agrees that the SELLER has been honest in representing the horse to the best of the SELLER’S knowledge. The BUYER acknowledges that this horse is young, inexperienced, energetic and green and may pose a danger to the BUYER and other individuals working with and around the horse. The BUYER assumes all responsibility for the horse’s actions from this time forth, releasing all liability from the SELLER.
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Post by TashGaia on Jun 5, 2009 11:03:09 GMT -5
Jamie, I thought that injury liability was included in my section saying...
Liability: Leasee agrees to pay all expenses relating to Equine after the date of this agreement. Leasee is responsible for any damage, injury or accident involving Equine. Hard Luck Horses is not responsible for any damage, injury or accident involving Equine.
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Post by swissgrl on Jun 5, 2009 11:08:42 GMT -5
Will this hold up in court if it comes down to it?
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Post by flecharojo on Jun 5, 2009 12:03:48 GMT -5
Will this hold up in court if it comes down to it? The best way to have that answered is consult a contract lawyer. Some contracts will not translate across state lines so this is always something that must be considered. |
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Post by jtjedi on Jun 5, 2009 12:20:14 GMT -5
Tash- It's not in your sales contract.  The liability clause is most important in the whole contract an is just about the only part that will hold up in court. I am consulting an attorney this am. I'll post whatever version we finalize. |
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Post by TashGaia on Jun 5, 2009 16:31:20 GMT -5
Well, with the sale one I am not retaining ownership... So, as soon as the paper is signed the horse now belongs to them and whatever happens is done by their horse, not mine.
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Post by jtjedi on Jun 5, 2009 17:30:11 GMT -5
Well, we all know what happens when we sell/adopt out horses, don't we? Sheeeet happens and you have to CYA. I am concerned about what happens to the horse and do not want it to end up at Chuck's feedlot, even if I sold (not adopted) it. I'm sure we all care about that. I am also worried about getting sued by the buyer if they get hurt, because I trained the horse. I have insurance that is retroactive even 10 years later if the buyer tries to sue me. Sigh.. the life of a horse trainer. |
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Post by jtjedi on Jun 5, 2009 17:35:45 GMT -5
I have had my attorney look over my sales contract and he said it was very good and it would hold up in court.
I have pasted it here:
Bill of Sale -Purchase Agreement
Buyer: Seller:
Name: Name:
Address: Address:
Ph No#: Ph No#:
1. This agreement is made between _______________ herein referred to as the BUYER and _____________ herein referred to as the SELLER.
2. Horse to be purchased:
Name: ________ DOB: ________ Sex: ________
Color: ____________Breed: ____________
Brands: ___________ Locations: _____________ Microchip: __________
3. Consideration
In consideration of the total sum of $ USD, ( dollars), SELLER agrees to sell and BUYER agrees to buy the said horse described above on the terms and conditions further set forth herein. (initial:______________)
4. Payment Terms
The purchase is for cash and BUYER agrees to pay $________ in full on the day of , 2009. (initial:______________)
The registration papers will be surrendered to the buyer at the time the last payment is made. The seller (____________) does / does not require an insurance policy showing
seller as loss payee.
5. Registration and Ownership Transfers
Upon confirmation of payment in full as set forth above, SELLER agrees to promptly execute all necessary papers and to take all necessary steps to transfer ownership and registration of the animal to BUYER. BUYER agrees to pay all Ownership and
Registration transfer fees required to transfer ownership to BUYER.
6. Care of Equine
BUYER agrees to provide responsible care for Equine as directed by their veterinary professional. This includes yearly veterinary examination and vaccinations, required dental floats, and regular parasite control (worming). BUYER also agrees to provide
regular hoof care and the have a qualified farrier trim Equine’s hooves at no longer than 10 week intervals unless advised otherwise by BUYER’S vet or farrier. BUYER agrees to seek immediate medical care should the Equine become ill. Equine must not be euthanized unless determined necessary to relieve suffering. If Equine is not being adequately cared for as per this contract and vet and farrier recommendations, BUYER agrees to surrender Equine to SELLER () without any refund of the sales
price. (initial:______________)
7. Information
BUYER agrees to keep SELLER informed of current address and to give periodic updates on the health and welfare of the equine. BUYER agrees to allow SELLER to examine Equine, Equine’s living quarters and any related spaces upon request. The purpose of any examination would be to ensure the continued acceptable care of Equine and to ensure that the terms of this contract are being upheld. If Equine is not being adequately cared for as per this contract and vet and farrier recommendations, BUYER agrees to surrender Equine to SELLER (Jamie Thomas) without and refund of the sales price. SELLER must agree to any transfer of ownership and or custody of and the full conditions of this contract must be agreed to and transferred to the new
owner/custodian. (initial:______________)
8. Warranties
(1) The SELLER warrants s/he has clear title to said horse;
(2) The SELLER makes no other warranties, express or implied, including the warranties of fitness for a particular purpose except as may be otherwise provided for in this Agreement as in (3) below;
(3) The SELLER warrants the following: none, purchase “as-in” condition. Equine is guaranteed sound on , 2009, the day of delivery to BUYER.
(4) BUYER warrants that BUYER has had the option to review the condition and health of the horse, including any veterinarian examinations, at BUYER’s expense. In the event BUYER has the horse examined by a licensed veterinarian as indicated in this
paragraph, then that veterinarian examination shall be attached to this agreement.
(5) In the event said horse shall not meet any of the above warranties at the time of delivery, provided same is discovered on the date of delivery to BUYER, SELLER agrees to do the following: the horse will be returned to the SELLER in satisfactory
condition. The sale will be nullified and all previous payments made will be returned.
9. Injury Liability
The BUYER understands that horses, horseback riding and equestrian activities carry inherent risks of injury, damage or death, and that purchase of the Equine herein includes these risks. The BUYER knowingly assumes the risks, known and unknown, of all activities on and around the Equine from this time forth. The BUYER agrees to the following:
A) The BUYER is and will be responsible and liable for any and all injuries including, but not limited to physical injury, economic or pecuniary injury, death, mental or emotional injury and property damage arising from, related to, based upon, or attributable to the Equine or the SELLER.
B) The BUYER waives, discharges and releases the SELLER from any claim that may now or hereinafter arise for any injury including but not limited to physical injury, economic or pecuniary injury, death, mental or emotional injury and property damage arising from, related to, based upon, or attributable to the
Equine or the SELLER.
C) The BUYER agrees that the SELLER has been honest in representing the Equine to the best of the SELLER’S knowledge. The BUYER acknowledges that this Equine is young, inexperienced, energetic and green and may pose a danger
to the BUYER and other individuals working with and around the Equine. The BUYER assumes all responsibility for the horse’s actions from this time forth, releasing all liability from the SELLER.
10. Risk of Loss
(1) Pending delivery to BUYER, which delivery shall be memorialized by BUYER’s signature on a receipt for delivery, SELLER shall assume the risk of loss of said horse,
and upon receipted delivery to BUYER, BUYER shall assume the risk of loss.
(2) In the event of the loss of the horse prior to receipted delivery to BUYER, SELLER shall return to BUYER any deposit paid by BUYER.
11. Buy back option
The seller ( ) does/ does not wish to retain the right to buy the
above Equine back if the new BUYER(s) decide to not to retain ownership or custody. This first right of refusal is valid until 01/01/2045, for a price not to exceed current market value of Equine at time of sale. If Equine is sold without offering the SELLER right of first refusal, then BUYER agrees to pay
SELLER the sum of $5,000.00 as liquidated damages. BUYER further agrees that SELLER shall have the additional right to seek injunctive relief to enforce the provision and BUYER shall pay for all costs and expenses, including court costs, litigation expenses, and actual, reasonable attorney's fees. (initial:______________)
12. Default
If the buyer is unable to fulfill the contract, the horse will be returned to the SELLER in satisfactory condition. The sale will be nullified and all previous payments made will be
forfeited.
Upon material breach of this Agreement by one party the other party shall have the option to terminate same.
On any breach, the other party shall have the right to recover expenses and costs within the parameters of paragraph 13, below.
13. Law
This Agreement shall be governed by the laws of County in the State of Washington. Any legal action must be filed in the county of , provided however, the parties agree to required Mediation and Arbitration of any disputes relating to this
transaction.
14. Other information
15. Captions and Headings
Any captions or headings used in this Agreement are for descriptive purposes only and are not to be considered terms of this Agreement.
Executed this day of , 2009.
Buyer: ____________________________ Seller :____________________________
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Post by sundancer on Jun 7, 2009 15:30:37 GMT -5
Thanks, guys! I needed one! I'm looking at getting a mare from a lady who doesn't want her any more. Your contracts are all great. I've changed them a bit and created my own now for this purchase.
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Post by jtjedi on Jun 8, 2009 1:39:45 GMT -5
It's official! The new owners have no issues with signing the contract! Yeah!
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Post by sundancer on Jun 8, 2009 8:38:28 GMT -5
Me too! I'm getting a grulla quarter horse mare, very nice. She has some issues, so I'll be starting her groundwork from the beginning. But, at least she's getting a good home and not being put down! I'll fill you all in and post pics in about a week.
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