ridecamp@endurance.net: Re: foal vet check and purchase contract

Re: foal vet check and purchase contract

Ramey Peticolas-Stroud (ramey@wvi.com)
Thu, 07 Aug 1997 11:51:24 -0700

Hi Bambi, this is a bit long so hang on...

First, my thoughts are from a rider to a rider, you should get specific
legal advice from your attorney.

I'll leave your vet questions for the vets and limit this note to
purchase-related issues and risk of loss. To begin, there is no standard
contract for the purchase of a foal. It is up to the folks involved to
make mutually acceptable arrangements.

Next, "oral" purchase and care contracts are binding in most states if
they do not not exceed 12 months. However, putting oral understandings
in writing is definitely worth your time. Memories sometime fade and
stuff happens. A contract can be anything from a letter to a formal
document. Usually the strength of the relationship between buyer and
seller dictates how extensive the written agreement will be.

Now, as to your specific questions. Determining when title and risk
passes from seller to buyer is a critical issue. The common contract
term "FOB" means "free on board." It comes from old-time sailing ships
and means when the cargo is actually on the ship, risk of loss passes
from the seller to the buyer. Today, FOB can mean at any time or place
as agreed upon by the parties.

If your purchase is subject to a clean vet exam, then the exam is called
a condition precedent. If the exam occurs after title has passed it is
called a condition subsequent. In this latter case, you have a right of
return and refund if there is a problem with second exam.

In your situation, it might be safest to negotiate a contract of sale
wherein you agree to buy for a sum certain and make it subject to one
final vet exam. Title would pass at the time of actual delivery (ie FOB
the back door of your trailer).

The cost of baby care, vet bills, special feeds, etc. can either be
included in the purchase price of the horse or billed on an as-needed
basis.

Insurance is good. Either the breeder or purchaser can buy insurance.
In either case you can be the named beneficiary. But what is your loss
if title doesn't pass until delivery? Really it's only opportunity cost
which is often more emotional than financial.

So a lot of stuff to think about... drop me an E-mail if I've created
more questions than I've answered.

Ramey


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