Equine Law Blog

Insist on a written sales contract.

Written sales contracts might not eliminate every sales dispute, but they can narrow disputes substantially.  A simple sales contract can take as little as five minutes to write.  Two essential ingredients of a sales contract are: the seller's warranty that he owns the horse and is legally capable of transferring ownership to the buyer, and the seller’s obligation to immediately transfer papers to the buyer in a form required by the applicable breed registries.

Ask to see the horse's current breed registration papers.

Maybe the seller lacks papers.  Maybe the horse has never been registered.  Before parting with your money, demand to see the papers now.

Contact the breed registry.

Some breed registries, through online systems,  help you identify the horse's last recorded owner of record.  This may help confirm the seller's interest in the horse, but keep in mind that there might be other (non-recorded) owners of the horse.  (As this blog addressed, a few courts have ruled that a horse’s registration papers are not necessarily conclusive evidence of ownership.)

Demand proof of an agency relationship from the "seller."

What if you are not directly dealing with the horse's owner but with someone acting on the owner's behalf?  Although the person with whom you are dealing might call himself the sales agent, the law may impose a duty on you to confirm this.  Find out whether an agency relationship truly exists and whether the agent has authority to sell you the horse.   When in doubt, ask to speak to the horse's owner and demand that he or she confirm the agent's authority.  Consider having the horse's owner sign the sales contract.

Wrap-up

Careful planning can help you avoid disputes.  A knowledgeable lawyer can help, as well.

Read Part 1

• Papers, Papers - Who has the Papers? Part I – Legal Rights in Registration Paper Disputes