What to look out for when buying a horse?

How to deal with hidden defects and their claims?

Imagine that you have bought a horse, but after a few days it starts to limp or show other undesirable behaviour. What to do now? According to the law, the buyer can claim rights under defective performance if:

• the defect occurs within 6 months of receipt (and proves that the defect existed at the time of purchase),
• or if the defect was deliberately concealed by the seller.

In such a case, the buyer can claim a discount on the purchase price, repair (for example, reimbursement for treatment), replacement (unfortunately, this is quite unrealistic for a horse) or withdrawal from the contract. The claim should always be in writing and is documented, so you need to secure a veterinary report, witnesses and other evidence.

When things don’t go to plan

We have dealt with problems over the acquisition of a horse within our practice. We were approached by a client who had purchased a riding horse that was said to be of high performance. However, the buyer soon discovered that the horse had chronic movement problems that disqualified him from the sport. The court found that the seller knew about the condition and concealed it. As a result, the purchase agreement for the horse was rescinded and our client recovered the money he had invested in the purchase of the horse.

In another case, the purchase contract for a horse was rescinded because the horse proved to be mentally unstable and dangerous. Although the seller argued that it was an “individual reaction to a new environment”, the court sided with the buyer, who produced an ethologist’s report.

Risks are taken by both parties

Buying a horse is a significant step in which certain risks are borne by both the buyer and the seller. The buyer must be prepared that the horse may have hidden defects (health or temperament), the contract may not adequately describe the horse’s true appearance, the seller may not provide a veterinary report or obtain any evidence to use for a claim if necessary.

In turn, the seller runs the risk of an unjustified claim or litigation against the buyer, is liable for defects of which he may not have been aware, and may face a challenge to the validity of the contract if he fails to ensure that it is properly drafted.

Lawyer’s tip: What you shouldn’t forget when buying a horse

Always have a written contract

Even if both parties trust each other and feel that “an agreement is enough,” we know from our own experience that these situations often end in disputes where one party claims something different than the other. A horse is not an item that can simply be claimed like a mobile phone – and verbal agreements are highly inappropriate in such a transaction. A written contract of sale for a horse allows the terms, obligations and responsibilities of both parties to be spelled out precisely. It greatly increases your legal certainty in the event of a dispute.

Insist on a veterinary report

A pre-purchase veterinary examination should be the norm, not the exception. Ideally, have the report prepared by an independent veterinarian who is not related to the seller. This report should include a detailed description of the horse’s health – including musculoskeletal, dental, vaccinations and any congenital or acquired defects. For sport horses, we recommend including x-rays. If it later turns out that the horse has suffered from a hidden defect, the veterinary report will help you with any defect claims.

Clearly describe the purpose of the purchase

In the contract, we recommend that you explicitly state the purpose for which you are buying the horse – for example, for recreational riding, training children, breeding or sporting purposes. This is very important if the horse turns out to be unfit for that purpose. For example, if the buyer proves that the animal cannot be ridden safely due to a medical condition, even though it was sold as ‘suitable for sport’, this may be a defect that gives the right to withdraw from the contract.

Keep all documents and communications

The buyer should keep copies of all documents related to the purchase of the horse. In particular, the purchase contract and its attachments, the veterinarian’s report, the horse’s identification passport, vaccination and health care records, all written communication with the seller (emails, messages, advertisements).
These documents are necessary in the event of a claim, litigation or transfer of ownership to the records of the Czech-Moravian Breeders’ Society.

Consider a legal review of the contract

Especially if the amount involved is higher (for example, sport horses, studs or pregnant mares), it is definitely worth having a lawyer check the purchase contract before signing. A lawyer can alert you to unbalanced clauses, missing clauses or legal risks that are easily overlooked by the layperson. Consistent contract drafting can save you thousands (or even tens of thousands) of crowns in a future dispute. Don’t hesitate to contact us, we can help you review or draft your contract.

Summary

Buying a horse is not only an emotionally important step, but above all a legally and financially significant investment that carries a number of risks. Therefore, it is absolutely essential to have everything properly covered by a written purchase contract – verbal agreements are not really enough when it comes to horses. The contract should precisely define the identity of the horse, its health, the purpose of the purchase and the terms of handover and payment. It is also advisable to secure an independent veterinary report, to state in the contract the intended use of the animal (e.g. for recreational riding) and to keep all documentation and communication carefully. In the event of disputes, these details may then be at issue. If you are unsure, consult a professional – a legal consultation before signing a contract is an investment that can pay off handsomely.