owners of loan pony want to sell

Can anyone help!!
We signed a years loan agreement for a pony and 6 weeks down the line they said we want to sell him and are putting him for sale .. I feel hard done by as the pony when they had him was put in a field for 2 years with severe switchitch .. no tail..no mane and skin was awful .. feet were overgrown!!
Now he is looking lovely since we have had him and put alot of time and money into him ..
Can they do this ??? Even tho we signed a contract for a year ???

Yes, he's their pony.

The only thing they're legally obligated to do is refund you any money for the unused months if he's sold before the lease is up.

What does the contract say?

I'm sorry - but six weeks is really not a lot of time. You knew the condition of the pony when you started the lease.