Contracts are a cost-effective solution for avoiding litigation.
Before new legislation was passed, equine buying and selling transactions were often completed with no written documentation, or with a simple bill of sale that did not specify the commissions paid to agents. Californian Jess Jackson, the owner of Kendall Jackson winery, took action in 2006 against the practice of agents in the racing industry receiving undisclosed commissions from both buyers and sellers. Later that year, Kentucky passed a law making the failure to disclose dual agency unlawful. Hey & Hey Attorneys at Law played a role in getting similar legislation passed in California in 2010.
In 2010 California added Section 19525 to the California Business and Professions Code, which affected everyone buying or selling a horse or horses, whether as a private individual or as a business. The amended statute requires the following:
- Both the buyer and the seller (or their agents) involved in a horse sale transaction must sign a written bill of sale.
- In the event that a single agent is acting on behalf of the buyer and the seller, this information must be disclosed in writing
- A written bill of sale must be created in cases where an agent receives over $500
Whether you are the buyer, seller, or the agent, it is critical to ensure a correctly written bill of sale for all transactions.
Horse Lease and Rental
Some clients prefer to lease a horse since the process allows them to experience the responsibilities of ownership for a short time with no permanent commitment. Whether you are the owner or the lessee, or want to take a full lease or a share lease, it is important to have your equine attorney review your horse lease in order to limit your liability during this period.
Horse Trainer Liability
If you do not provide adequate safety gear or you fail to obtain a signed emergency treatment consent form and your student is injured during a riding lesson or ride, you may be held liable for negligence and have to pay hefty damages.
Horse Boarding
We prepare and review boarding contracts, safeguarding your horse's care and protection.
Horse Trial Sale Period
Both potential buyers and sellers of a horse can avoid pitfalls of a trial period by drafting a contract that spells out the terms of liability and responsibility of each party during this period. For example, this contract can include terms such as what activities are allowed to avoid injury of the horse during the trial period and who is responsible if the horse is injured during the trial period.
