Buying and selling a horse safely

Legal guidance provided by Aria Grace Law CIC

What are the responsibilities of a trader when selling horses?

Since 2015, the sale of any horse by a trader (i.e. somebody selling horses with a view to making a profit) to a consumer (i.e. a hobby equestrian) in England and Wales has been regulated by The Consumer Rights Act.

This legislation provides consumers with enhanced protection when buying horses. It states that any horse sold to a consumer must be:

a) Of satisfactory quality
b) Fit for its intended purpose
c)As described

If the horse does not meet with any of these requirements, then the seller is required to offer a refund, (if the buyer rejects the horse within 30 days of receiving it) or a “replacement” or “repair”, or if they are not possible, a refund (if the horse is rejected more than 30 days after the buyer has received it).

There is no way for a trader to avoid these requirements. A trader can try protect themselves by:

a) Knowing the exceptions contained in the law.
b) Creating enough documentary evidence to rely on if a claim or dispute arises.

The Consumer Rights Act states that a horse which does not conform to the requirements within six months from the time of the sale will be treated as not conforming on the day that the sale was made. However, this assumption can be reversed if the trader can prove that the horse did conform on the day that the contract was made.

It is clear that the Act could, in certain circumstances, create a high burden on a trader. Thankfully for traders, there are some exceptions. A horse will not be deemed as “unsatisfactory” even if it does have a defect, if the defect:

a) Was specifically drawn to the buyer’s attention before the agreement was made (for example, where an advert discloses that a horse is not a novice ride, and the buyer subsequently complains that the horse has acted in a naughty manner);

b) Where the buyer has examined the horse before the purchase and that examination ought to have revealed the defect (for example, where a horse has a large blemish which should have been visible to a buyer).

What are the responsibilities of private individuals when selling horses?

The Consumer Rights Act does not apply to sales of horses between two private individuals. However, private sellers of horses may still be held liable for issues arising after the sale, if they have made a misrepresentation to the buyer. A misrepresentation occurs when a seller has made a statement to the buyer about the horse which they knew, or ought reasonably to have known, was not true or may not have been true. If the buyer has relied on such a statement in buying the horse, then they may be entitled to cancel the contract for the sale of the horse.

How can I avoid a legal dispute when selling a horse?

Advertisements are often relied on when a buyer wishes to establish that a horse is not as described by a trader. There is a delicate balance to be struck between attracting a buyer, and creating a document which could form the basis of a dispute.

Take care not to oversell the horse. Try to use only statements which you can keep factual evidence of, for example, competition results. Don’t use sweeping generalisations.
Expressly disclose quirks or habits. This may put buyers off, but it is better to lose a buyer than be involved in litigation with them.

Using a contract

Where a sale involves either a high value horse, an unusual term (such as deferred payment), an international element or a horse with any health issues or quirks, it is highly advisable to use a contract. “Off the shelf” contracts will rarely provide the protection which each unique transaction calls for.

Examples of a few key issues which should be considered in any contract for the sale of a horse include:

The buyer should agree that they do not rely on any verbal statements made by the seller in deciding whether they will purchase the horse. Buyers will often say that a seller has told them something at a viewing. The seller may not have thought to be a binding statement at the time, but it could be used against them during a dispute. Worse still, the parties may have different recollections about what was said verbally.
The buyer should disclose in the contract known (current or historical) health issues, temperament issues, quirks or other management requirements of the horse.
The buyer should confirm what the exact intended purpose for the horse is, to avoid the horse being used for a purpose other than what it was purchased, and a complaint arising if it isn’t suitable for that.
If a horse is being sold overseas, a clause agreeing that the law of England and Wales shall govern the agreement, and that the Courts of England and Wales shall have exclusive jurisdiction to resolve any dispute arising.

These are provided by way of examples only and are not exhaustive. You should contact a solicitor to seek advice about the preparation of a contract of sale.

Retain evidence

Sellers should keep (we recommended backing up electronically) evidence relating to the horse during their ownership and at the point of sale. This may include:

Videos of the horse being trotted up on the day that it leaves.
Videos of the horse being ridden.
Any veterinary reports held by the seller.
Any communications between the seller and the buyer.
Any advertisement of the horse.
A photograph of the previous owners of the horse in its passport (in case the seller needs to make contact with them).

What should I do if a dispute arises about a horse that I have sold?

Unfortunately, where horses are concerned, disputes will inevitably arise. Albeit that the vast majority of sellers would never knowingly sell a horse which is not the correct fit for the purchaser, horses can react badly to certain changes and they can develop behavioural issues.

Purchasers will be sceptical and panicked if a horse transpires not to be suitable for their needs, and of course, the seller will be their first port of call for redress.

We set out below our guidance in respect of how to deal with a complaint or claim, if one arises.

Always remember that anything which you write could end up being read by a judge deciding your case. For that reason, you should not reply in anger or haste to any messages, e-mails or letters from a disgruntled buyer. Consider the position carefully and respond in a measured manner.
Don’t put off dealing with communications, particularly if court proceedings have been threatened, or have been issued. The buyer could secure a county court judgment in default against you, which is more difficult to deal with.
Know the potential implications for you. If a claim threatened is for less than £10,000, then the purchaser is unlikely to be able to recover legal fees from you, even if they are successful with their claim. This may be a significant factor for them in deciding whether to pursue you. If the claim is for more than £10,000 (note that the claim could include additional expenses, such as veterinary fees and transport, not just the price paid for the horse) then the purchaser’s legal fees are also potentially recoverable from you.
Gather and preserve evidence. Give consideration to what will be available to you in order to disprove any untrue allegations.
Understand the requirements of the court process and seek legal advice at an early stage, if you are able to. If you become involved in court proceedings, a judge is likely to issue a strict timetable, providing dates by which certain documents must be prepared and exchanged. Failure to meet these deadlines can have severe consequences.
Whilst may not always be proportionate or necessary to invest in legal representation, and you may decide that you wish to represent yourself in respect of any claim made against you, Aria Grace Equine Law can offer cost effective representation to assist and advise you, including representation at hearings or preparation of court documents.

Is a receipt the same as a sales contract?

Many traders will supply a receipt stating “sold as seen” and confirming the amount paid for a horse. Unfortunately this does not comprise a contract: it is a document which is being exchanged after the sale has taken place. It will be considered along with all other documents and records of the transaction as evidence of the sale agreement if there is a dispute.

Does having no written contract mean that there is no contract (for sales, liveries, co-ownerships, rider arrangements etc)?

In short, no! A contract can either be made in writing, or implied based on two parties’ actions. To be valid, a contract must include offer (I will sell you this horse), acceptance (yes please), consideration (££) and performance (the buyer takes possession of the horse).

When you buy or sell a horse, or make any other arrangement (such as livery, co-ownership, or professional rider arrangements) where money changes hands in exchange for goods (such as a horse) or services (such as livery or training), a contract exists. By putting the contract in writing, you are taking charge of what is contained in the contract. In the absence of a written contract, the implied contract might include all the related communication between the parties – conversations, WhatsApps, messages and emails.

A good written contract will include all the key commercial terms (such as pricing, timescales, penalties for non-payment, the timing of when a horse changes hands) and a certain amount of legal protection to ensure that it is just the written contract which forms the basis of the transaction, and not all the related communications.