I would be surprised if the horse is even registered. That's most likely why she doesnt have the papers. Either that or she got the horse free with papers specifically to put the papers with another horse.
Also no way on this earth I would ever sign a bill of sale with strings attached. You basically got a worthless untrained horse for free, okj fair enough, but lets say you put several years of training into the horse and turn it into the greatest thing since sliced bread, you may still have a worthless horse because of the give back clause. Now this person profits from your training. Lesson learned don't do that again. But looking at the clause it says, "If you could not care for" you would give it back. If I put alot of training in the horse and wanted to sell it I would. If anythign was said, My response would be, "I am perfectly capable of caring for the horse and that isnt why I am selling it so I am under no obligation to give it back. Personally you got a free horse and I would pretty much just sever contact with the previous owner and not worry about it.
I'm sorry, but to be honest I am a bit offended by this. Maybe this isn't the way you meant it, just the way I took it.
And I hope you don't take any offense to this, I am really not trying to be rude here, but you don't know me or anything about me? I feel like maybe you're thinking I picked up this horse only because she was free and I wanted something cheap or for a resale or project. That was not and is not the case. I find it a little offensive you'd say a horse is worthless because of a give back clause (maybe I don't fully understand what you meant?), however, I went into this sale knowing full well what was included/not included/what have you. I don't see a horse as worthless because of a give back clause that probably will never come into play. And if it did, so what imho.
I also wasn't asking for suggestions on what to do if I decided to sell her someday down the road. Again, don't take this offensively please, I am only trying to clear up things on my end.
Just a side note as well; she is most certainly registered and the previous owner did not get her for free. =)
Edit: I realize the when you post a topic you will receive numerous replies, I may not like all of them. That's not at all what I am getting at here. I would ONLY like to clear up my end of things as well as the fact that yes she is certainly registered. I posted this topic in hopes to find out how I would go about receiving the mare's papers, etc etc. Again, I do realize that I may not agree with every reply in a topic, your reply just stood out to me as you spoke of my mare being worthless because she was free and I only wanted to clear up the fact that you have no idea how this sale came about, etc etc. =)