What should I look for in a contract? - Page 2
   

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What should I look for in a contract?

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  • Contract of sale what to look for

 
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    08-03-2010, 11:50 PM
  #11
Yearling
Quote:
Originally Posted by Alwaysbehind    
Are you dealing with some type of rescue organization?

If not then no way!

When you purchase a horse it is yours to do with as you like. Period.

Your sales contract (receipt) should state the name, age, registration information of the animal you purchased. The price and that the animal is sold with no warranties or guarantees.

That is about it.
I agree with Always. This should be everything you need. Just make sure that you get a bill of sale with the previous owners signature and your signature, each person should have their own copy, along with everything Always said.
     
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    08-04-2010, 10:25 AM
  #12
Started
I would never sign a contract that says the previous owner can take the horse away if they feel it is not being taken care of. That is crazy, since their idea might border on unrealistic. I would also worry that they have done this before, maybe "sold" another horse and taken it back to sell again.
The part about them having to be notified about winnings is not even close to being normal. Once an animal is sold, the original owners have no reason to know what the horse earns, unless they feel intitled to some of the earnings.
If your trainer is saying this is a good contract, what is in it for her/him? Is she/he getting a percentage of the sale? I just think that is a bit strange.
If sellers think they are entitled to being told how much the horse earns and can take it away for their idea of bad care, then they want to be involved too much in the horse after it is sold.
You get a bill of sale saying the horse is yours, the papers if there are any, plus you will know the horse is sound because you have a vet check done before paying for it.
The sellers should have no other say or demands, written or not.
     
    08-04-2010, 11:58 AM
  #13
Started
Occasionally sellers will ask you to sign a first rights of buy-back contract, but that's as far as it goes. Basically, that sort of contract states that if you EVER decide for ANY reason that you are going to sell the horse, you will contact the previous owners and give them the chance to buy the horse back before putting it on the public market.

I think this is reasonable, but nothing beyond that.
     
    08-04-2010, 12:29 PM
  #14
Banned
Quote:
Originally Posted by Eolith    
Occasionally sellers will ask you to sign a first rights of buy-back contract, but that's as far as it goes. Basically, that sort of contract states that if you EVER decide for ANY reason that you are going to sell the horse, you will contact the previous owners and give them the chance to buy the horse back before putting it on the public market.

I think this is reasonable, but nothing beyond that.
This is only reasonable if the contract states at what fee the previous owner can buy the horse back at and how the buyer is required to contact them.

For example the horse could be sold, new owner puts lots of amazing show miles on the animal and it is now worth 10x what they paid for it, the old owner might insist the buy back contract allows them to buy the horse back for what the buyer bought it for. So be sure to state that the buy back means at fair market value.

And what extreme does the new owner have to go through to contact the seller. Sending a certified letter to the last known address and waiting two weeks enough?
     
    08-04-2010, 09:33 PM
  #15
Foal
It sounds like you're looking to purchase a high dollar horse here (based on the owner wanting you to report winnings to them) so I'd definitely recommend having a contract.
Reporting winnings back to the original owner is a pretty standard request on higher end sales -- especially if they raised the horse and wish to use the information to promote their operation.
Having a clause that allows the original owner to repossess the horse for any reason is completely non-standard. I'd advise you to not sign the contract until this is removed.
I'd also recommend including everything that the horse is being stated as being capable of in your contract. Make sure that you're getting what you're paying for.
     

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