Rights of First Refusal in Equine Contracts
What is a Right of First Refusal?
A “right of first refusal” is a right that is granted under a contract that requires that the one who has bought or received a horse, under certain terms and conditions, give the seller an opportunity to own the horse again if or when the buyer wants to part with the horse.
The seller retains right of first refusal if, at any time in the life of the horse, the Buyer is unable or unwilling to keep the Horse. If the Buyer desires to sell the Horse, the Buyer agrees to contact the Seller and allow the Seller the first opportunity to purchase the Horse. The seller also retains right of first refusal to take the Horse back should the Buyer wish to place the Horse in a new home, but does not wish any money back.
This example is not appropriate for all situations. Right of first refusal clauses can be much more detailed. For example:
- Some impose time limits on how long the right of first refusal can be offered to the former seller.
- Some specify how much must be paid to re-purchase the horse and when payment must be made.
- Some provide that if the horse owner receives a good faith offer to buy the horse, and if the horse owner is inclined to accept that offer, the owner must first allow the former owner a chance to match or beat that offer within a limited period of time. If so, the former owner can re-purchase the horse.
Right of first refusal clauses require careful drafting and attention. For your protection, consult with a lawyer.
Julie Fershtman is considered to be one of the nation's leading attorneys in the field of equine law. A frequent author and speaker on legal issues, she has written over 400 published articles, three 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.View All Posts by Author ›
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"Excellence in the Advancement of Animal Law Award" - American Bar Association Tort Trial & Insurance Law Section Animal Law Committee
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"Industry Service Award" - Michigan Equine Partnership
"Catalyst Award"- Michigan Horse Council
"Outstanding Achievement Award" - American Riding Instructors Association
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"Associate Service Award" - United Professional Horseman's Association
"National Partnership in Safety" Award" - Certified Horsemanship Association
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