As a lawyer, I am often asked by newcomers taking riding lessons what the buyer’s legal rights are when purchasing a horse. You are governed by contract law as defined in your state. It is imperative to have a written contract so that your agreement is less ambiguous and easier to define.
Generally speaking, and one of the most important riding lessons is that the buyer purchases a horse “AS IS”, which means that you, the buyer, have a duty to examine the horse prior to purchase. Any unnoticed defect found after purchase is not grounds for action to sue the seller. It’s really a “buyer beware” situation!
Of course, any agreement may change the “as is” nature of the transaction. You can include in your purchase contract, for example, that the horse is 8 years old and suitable for a child to ride. If you later find out that the horse is 15 years old and was used by the seller like in gymkhana events, you may very well have a cause of action against the seller!
1. The more you can get in writing, the better. At a minimum, you should expect to receive a bill of sale that identifies the horse by name, age, breed, color, sex, and any other identifying traits that distinguish it from another horse. If any of those elements of the contract are later found to be untrue, you may have a cause of action if the breach is material. For example, if the horse is said to be 6 years old and it is actually 5 years old, you may not be harmed in the eyes of the law. If the horse is said to be 6 years old and it is actually 18, you would be disadvantaged because you are buying a horse whose useful life is significantly less than you expected.
2. If you can prove (that’s the hard part) that the seller committed fraud, you can beat a written contract just like in other civil contract cases. However, fraud is difficult to prove because it requires you to show that the seller made an intentional misrepresentation designed to get you to buy the horse. For example, if the seller knows that the horse has navicular disease, but tells the buyer that he is completely healthy, the buyer has a cause of action if he can prove that the seller had knowledge of that fact.
3. In addition to the written contract, also look at the ad the seller has posted. The ad may contain specific statements that could be construed as part of the deal. For example, a buyer who bought a horse advertised as “no vices” could probably successfully sue the seller if, immediately after purchase, the horse turns out to be a lousy sieve. Even if the contract says you’re buying the horse “as is,” the written ad would probably give the buyer recourse anyway.
4. If the seller has a higher specific duty to you, then you can also appeal. If the seller was also your instructor, he or she has an affirmative duty to help you purchase the correct horse beyond the seller’s normal contractual obligations.
5. Determine if the seller is subject to the UCC? The Uniform Commercial Code governs sales of goods by “merchant.” In the horse business, a dealer would be someone who earns a regular income from horse transactions, such as breeders and stockbrokers. If the UCC applies, then the transaction will come with two implied warranties: merchantability and fitness for a particular purpose. This will mean that, regardless of the contract, the horse must be reasonably fit and sound, as well as fit for the buyer’s purpose. These can only be excepted if this is done in writing in the contract. So, search for that language!
Do not lose your head when buying a horse. This is the first horse riding lesson everyone should learn! Think things through and get it all in writing!
For more information on contracts, visit http://www.horsebacklessonsguide.com or http://www.equestrianriderguide.com
