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Three Written Words That Could Prevent a Lawsuit

The buyer pays for the horse, but before delivery, the horse dies.  Who gets the money?  Three words can answer the question: "risk of loss."

Who bears the risk of loss in an equine sale if the horse dies after the transaction completes but before the buyer takes possession?  In the eyes of the law, the answer is:

  • The risk of loss is whatever the parties have mutually agreed inwriting (assuming they have a well-worded sale contract).
  • If there is no written agreement, the risk might be set by law, possibly by the applicable Uniform Commercial Code.
  • If no written agreement exists, circumstances of the sale might help.  For example if either party bought a policy of equine insurance on the horse, and collected payment from the horse's death, it would be improper to also pocket sale money.

Risk of Loss

“Risk of loss” in a sale generally refers to the risk that the item sold could be lost or destroyed before the buyer takes possession. 

The Law of Risk of Loss

Almost every state (except Louisiana) has a Uniform Commercial Code that applies to sales in certain settings.  These laws often determine which party accepts the risk of loss, and when the risk transfers to the buyer.  These laws may not apply to all equine sale transactions.

How a Contract Can Help

A contract can specify which party - the buyer or the seller - agrees to bear the risk of loss.  For example, the contract can state:

“Buyer shall assume all risk of loss of the horse or diminution of the horse’s value as of the date a check or payment to Seller for the full purchase price clears the bank.  From that date forth, and at all times thereafter, Buyer shall assume responsibility for all arrangements and expenses involving the horse.”

A contract can also require the buyer to purchase equine insurance on the horse equal to the purchase price when full payment is made. 

Categories: Contracts, Liability, Sales/Disputes

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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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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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