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Breeding Contract Check-Up

Breeding season begins soon. Stallion managers and owners can plan ahead by reassessing and, where warranted, updating their contracts. How? Here are a few suggestions.

Availability of the Stallion

For collection (such as A.I) or live cover breeding, availability of the stallion is critical. But sometimes the stallion is already committed to a showing or racing schedule. If the stallion’s availability is limited to a range of months, the breeding contract can specify the time frame.

Payment

Breeding contracts can potentially involve a series of fees and charges. For example:

  • Fees. In addition to the stud fee, stallion owners and managers sometimes include booking fees, collection fees, straw fees, chute fees, and/or others.
  • Deposits. Breeding contracts often involve deposits, such as semen shipment container deposits. The contract can explain these deposits as well as conditions for refunds.
  • Late payments. When mare owners fail to make timely payments, stallion owners and managers might want to reserve the right to recover late payment fees or interest. The problem is, sometimes these charges are excessively high or violate state laws.
  • Tax. Is the breeding arrangement taxable under applicable law? If so, the contract can identify who is responsible for paying the sales tax.

Release of Liability (Where Allowed by Law)

Stallion owners and managers can consider including a carefully worded release of liability (where allowed by law) within their contracts. Keep in mind, of course, that having a release does not eliminate the need for having proper liability insurance. People who sign releases can, and sometimes do, file lawsuits.

Equine Activity Liability Act Language

As of October 2015, 47 states nationally have passed equine activity liability acts. These laws, in various ways, limit or control certain liabilities in horse-related activities. Many of these laws require contracts used by “equine professionals” (and horse breeders sometimes fit within that category) to include certain “warning” or other language.

Foal Guarantees

The terms “Guaranteed Live Foal” can generate different understandings. For example, some interpret the phrase to mean a foal that can stand and nurse, or a foal that survives for 24 hours (some contracts extend this to 72 hours) after birth, or the survival of one twin foal. To avoid misunderstandings, the contract can define the terms.

Other Language

Breeding contracts can include several other provisions, such as:

  • Defaults. Rights and remedies in the event that one party violates the contract (such as the right to collect court costs and attorney fees).
  • State law. Which state law governs the contract?
  • Optional arbitration or mediation of disputes. Many believe that arbitration is faster and cheaper than court proceedings. Stallion owners who want to retain this option can include arbitration and/or mediation of dispute clauses within their contracts.
  • Modifications/Amendments. The contract can specify that modifications are only valid if in writing and signed by both parties.

Conclusion

These are just some ideas for equine breeding contracts. Stallion owners and managers have numerous options based on their operations and applicable law. Good breeding contracts are a starting point – stallion and mare owners should also strive to follow the policies and responsibilities that they have set within the contracts.

This blog post does not constitute legal advice. When questions arise based on specific situations, direct them to a knowledgeable attorney.

Categories: Breeding, Contracts

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is considered to be one of the nation's leading attorneys in the field of equine law. She has successfully tried equine cases before juries in four states. A frequent author and speaker on legal issues, she has written over 400 published articles, four books, and has lectured at seminars, conventions, and conferences in 29 states on issues involving law, liability, risk management, and insurance. For more information, please also visit www.fershtmanlaw.com and www.equinelaw.net, and www.equinelaw.info.

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"Julie Fershtman is considered by many to be the nation's leading expert on equine activity liability acts. Her 30-minute presentation for a recent educational webinar on equine activity liability acts for the American Horse Council is available for viewing. Please take a look, here's a link: https://www.youtube.com/watch?v=hCROISSPMJs

Fershtman’s Equine Law Book Wins Fourth National Award

Julie Fershtman’s latest book, Equine Law and Horse Sense, won its fourth national award on May 31, 2021. It was selected to receive a "Finalist" Medal in the 2021 Next Generation Indie Book Awards. 

The 2021 Next Generation Indie Book Awards are presented by Independent Book Publishing Professionals Group, which is the largest International awards program for indie authors and independent publishers. Here’s a link for the complete list of 2021 winners and finalists: https://www.indiebookawards.com/winners.php?year=2021 

Fershtman’s Equine Law Book Receives Third National Award

Julie Fershtman’s book, Equine Law & Horse Sense, published by the American Bar Association, has been selected to receive a 2020 NYC Big Book Award in the category of “Reference” books.

The NYC Big Book Awards draws nominations world-wide. This is the third award for Fershtman’s book since its publication last year. Here is a link for more information, and to see the list of winners: https://www.nycbigbookaward.com/2020winners

Information on the book: https://www.amazon.com/gp/product/164105493X/ref=dbs_a_def_rwt_hsch_vapi_taft_p1_i0

Equine Blog Ranked in Feedspot

Foster Swift's Equine Law Blog was ranked #8 in Feedspot.com's "15 Best Equine Law Blogs and Websites".

Upcoming Speaking Engagements

In 2022, Julie Fershtman is scheduled to be a speaker on equine liability at these conventions:

Fershtman’s Equine Law Book Receives Second National Award

Julie Fershtman’s book, Equine Law & Horse Sense, published by the American Bar Association, has been selected to receive a 2020 NYC Big Book Award in the category of “Reference” books.

The NYC Big Book Awards draws nominations world-wide. This is the third award for Fershtman’s book since its publication last year. Here is a link for more information, and to see the list of winners: https://www.nycbigbookaward.com/2020winners

Information on the book: https://www.amazon.com/gp/product/164105493X/ref=dbs_a_def_rwt_hsch_vapi_taft_p1_i0

Honors & Recognitions

Equine lawyer, Julie Fershtman, has received these prestigious equine industry awards from respected equine organizations:

"Excellence in the Advancement of Animal Law Award" - American Bar Association Tort Trial & Insurance Law Section Animal Law Committee

"Distinguished Service Award" - American Youth Horse Council

"Industry Service Award" - Michigan Equine Partnership

"Catalyst Award"- Michigan Horse Council

"Outstanding Achievement Award" - American Riding Instructors Association 

"Partner in Safety Award" - American Riding Instructors Association 

"Associate Service Award" - United Professional Horseman's Association

"National Partnership in Safety" Award" - Certified Horsemanship Association 

Some of our Equine Law Services

Handling breach of contract, fraud/ misrepresentation, commercial code, and other claims involving equine-related transactions including purchases/sales, leases, mare leases/foal transfers, and partnerships.

Litigating a wide variety of equine-related disputes in court or through alternative dispute resolution (arbitration, mediation, facilitation).

Defending equine/farm/equestrian industry professionals,  businesses, and associations in personal injury claims and lawsuits.

Drafting and negotiating contracts for boarding, training, sales, waivers/releases, leases, and numerous other equine-related transactions.

Representing and advising insurers on  coverage and policy language as well as litigation;

Advising equine industry clubs and associations regarding management, rules, bylaws, disputes, and regulations.

Representing some of the equine industry's top trainers, competitors, stables, and associations.

Counseling industry professionals, stable managers, and individual horse owners. 

THE NATION'S MOST SOUGHT-AFTER EQUINE LAW SPEAKER

Did you know Julie Fershtman has spoken at the American Horse Council Annual Meeting, Equine Affaire, US Hunter/Jumper Association Annual Meeting, Midwest Horse Fair, Equitana USA, US Dressage Federation Annual Meeting, North American Riding for the Handicapped (now PATH International) Annual Meeting, American Paint Horse Association Annual Meeting, US Pony Clubs, Inc.'s Annual Meeting, All-American Quarter Horse Congress, American Youth Horse Council Annual Meeting, American Riding Instructors Association Annual Meeting, CHA Annual Meeting, and numerous others? Consider signing her up for your convention. Contact Julie directly.

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