What rights do I have as a buyer? What does an exclusion of warranty or transfer of risk mean? Is the horse described in the horse purchase contract really the right one? What to expect and what you need to pay attention to when dealing with a horse purchase contract – we’ve summarized it all for you in this guide.
Table of Contents
Everyone involved in buying or selling horses has likely dealt with the topic of a horse purchase contract before. Whether you’re a rider or a breeder, we’ll explain what you need to be aware of. Additionally, this guide covers everything else you should consider when it comes to buying a horse.
Essential Components of a Horse Purchase Contract – Tips
1. Contracting Parties & Warranty Disclaimer
The first step in a horse purchase contract is defining the parties involved: buyer and seller. It’s important to verify who you are dealing with and what type of contract applies.
Is the seller the actual owner of the horse? Checking the horse passport is essential, as the owner’s name is usually listed there. Also, determine whether the seller is a private individual or a company, as this distinction affects your warranty rights.
A commercial contract applies if the seller is a company and the buyer is a private individual. In this case, the buyer has warranty claims under § 437 BGB. If both parties are private individuals, a private contract applies, and the seller can exclude warranty claims.
2. Warranty Claims – What You Need to Know
Under a commercial contract, the buyer has warranty rights according to § 437 BGB. These apply if defects are discovered after the sale. The most important warranty claims include:
Subsequent Fulfillment: The seller must rectify defects unless it involves disproportionate costs.
Withdrawal: If a defect is significant, the buyer may withdraw from the contract.
Reduction: Instead of withdrawing, the buyer can request a reduced purchase price or partial refund.
Damages: Compensation claims may be made in addition to other claims.
Warranty rights are especially relevant if hidden defects, such as a chronic illness, are discovered post-purchase. However, if the seller is a private individual, these rights may be excluded through a warranty disclaimer.
3. Object of Purchase – The Horse
The horse itself is the central focus of the contract. It is essential to clearly describe the animal to avoid disputes about its identity or characteristics.
Checklist: Important Information to Include
Name
15-digit Life Number (mandatory for horses born after July 1, 2009)
Sex
Pedigree
Markings
To ensure the correct horse is identified, the implanted chip displaying the life number should be read.
Stay on the safe side! Free sample purchase agreement!
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Key Aspects of a Horse Purchase Contract
1. Purchase Price & Payment Terms
The purchase price, along with the time and method of payment, must be clearly specified in the contract. Different payment methods can be agreed upon, such as:
Bank Transfer: Include the seller’s bank details.
Cash Payment: Should be recorded in the contract.
Instalments: Must be detailed, including payment schedule and conditions.
2. Transfer of Ownership & Risk
Ownership and risk transfer are critical points that should be carefully addressed.
Retention of Ownership:
The seller often retains ownership until the full purchase price is paid. This should be clearly stated in the contract.Transfer of Risk:
It is usually in the seller’s interest to transfer risk as early as possible, ideally when the contract is concluded. This means the buyer immediately bears all risks if the horse is injured or dies.
To protect the buyer, it is advisable to specify in the contract that risk transfer only occurs when the horse is picked up or arrives at its new home.
3. Additional Agreements
Further agreements can be made to clarify specific aspects of the purchase.
Warranty Rights / Warranty Exclusions
Private sellers are legally allowed to exclude warranty claims.
This should be clearly stated in the contract to avoid disputes.
Agreements on Quality
Training Level: Has the horse undergone specific training (e.g., farrier handling, loading)?
Experience & Success: Does the horse have competition experience or documented successes?
Breeding Suitability: Is the horse suitable for breeding purposes?
Health Status: What is the current health status? Are there any known conditions or injuries?
4. Written Form Clause – Why It Matters
The written form clause ensures that only what is recorded in writing is legally binding. This clause is essential for legal certainty and should never be neglected, particularly in case of a dispute.
What must be included in a horse purchase contract?
A horse purchase contract should contain the name and address of the buyer as well as the details of the object of purchase (the horse), payment information and other important information.
Horse Purchase Contract – What Documents Must Be Handed Over?
When finalizing a horse purchase, it is essential that all relevant documents are handed over to the buyer. These documents provide proof of ownership, lineage, and legal status of the horse.
Mandatory Documents:
Horse Passport: Confirms the horse’s identity, vaccination history, and any medication treatments.
Ownership Certificate: Proof that the seller has the legal right to sell the horse.
Optional Documents (if applicable):
Breeding Certificate: Important for horses intended for breeding, proving lineage and pedigree.
Stud Certificate: Verification of breeding suitability or documentation of previous successful breeding attempts.
Ensuring that all necessary documents are included in the contract helps avoid legal disputes and confirms the authenticity of the transaction.
Form of the Horse Purchase Contract
While it is true that handshakes and verbal agreements can be legally valid for concluding a purchase contract, they carry significant risks.
Without a written contract, it becomes challenging to enforce agreements if one party later fails to honor the deal. In case of a dispute, verbal agreements are difficult to prove, leaving you with limited legal options.
How long after the purchase of the horse may I withdraw the contract?
The buyer has the right to withdraw from the purchase contract, only if a defect has been present at the time of delivery. As a rule, the buyer must assert his rights within two years.
Procedure of a Horse Purchase
The process of buying a horse can vary, but generally follows these standard steps:
1. Viewing
The first step is finding a horse that meets your criteria. Before starting your search, determine:
Age: How old should the horse be?
Height: What size fits your needs?
Training Level: What level of training is required?
Once you have defined your criteria, begin your search. Platforms like ehorses offer a wide selection to find your ideal horse.
Interested? Explore all horses on ehorses now!
2. Trial Ride (Depending on Training Level)
After finding a suitable horse, arrange for a trial ride. This typically involves riding the horse one to two times before making a decision.
In some cases, a trial period may be allowed, providing more time to assess compatibility.
3. Pre-Purchase Examination (Vet Check)
A veterinary examination is essential to assess the horse’s health and suitability.
Documentation: The examination results should be recorded in the purchase contract.
Accompaniment: Bring along an experienced person, such as a trainer, breeder, or veterinarian, who can provide valuable advice and guidance.
Having a knowledgeable person by your side during the examination helps you make informed decisions and avoid costly mistakes.
What has to be done after the horse purchase?
After completing the horse purchase, it is essential to officially register the change of ownership with the Equestrian Federation (FN). This process involves completing the required form and sending it along with the horse passport to the Federation. As the buyer, it is your responsibility to ensure that the registration is properly completed to establish legal ownership and avoid potential complications.
What has to be taken into account in a horse purchase contract?
It must be ensured that all important points are included in the horse purchase contract to safeguard the buyer and seller.
Important Questions Regarding Horse Purchase – Expert Interview with Attorney Andreas Ackenheil
The process of purchasing a horse has evolved over the years, with legal considerations playing an increasingly important role. Attorney Andreas Ackenheil, an expert in equine purchase law, addresses some of the most frequently asked questions to help buyers and sellers avoid common pitfalls.
1. What should buyers or sellers consider before finalizing a purchase?
Typically, the process begins with a viewing, where the buyer examines and tests the horse. Often, buyers decide on a different horse during this initial stage. Ensuring clarity about your expectations and requirements before the visit is essential.
2. What qualities should my horse have?
Horses are often purchased for specific purposes—recreational riding, competitions, breeding, or specialized training. It is crucial to define these requirements clearly in the contract. If the horse does not meet the agreed-upon qualities, the seller may be held liable. Specifying these details in writing simplifies proof in case of disputes.
3. Why is a written contract necessary?
While verbal agreements are legally valid, they pose significant risks. Nowadays, negotiations often take place via WhatsApp or Facebook, which complicates evidence gathering if a dispute arises. Without a written contract, it is difficult to prove what was agreed upon, such as the horse’s characteristics, the agreed purchase price, or responsibilities in case of health issues. Written contracts provide clarity and legal security.
4. What information should be included in a purchase contract?
A comprehensive contract should include detailed information about the contracting parties and the horse itself. Essential details are:
Life number
Breeding association
Special characteristics (e.g., color, markings)
Attorney Ackenheil advises verifying these details upon collecting the horse to ensure accuracy. This information is critical in case of disputes.
5. Do private buyers have special rights?
Private buyers are protected by consumer goods purchase laws, which significantly influence the contract terms and subsequent procedures if issues arise. When a commercial seller sells to a private buyer, warranty rights cannot be completely excluded. Additionally, during the first six months, the burden of proof shifts to the seller if the horse has a defect. This legal protection offers the buyer enhanced security.
6. How can the seller prove the health of the horse?
If health problems arise after the sale, proof becomes a central issue, especially if the agreement was made verbally. A recent veterinary examination, particularly for high-priced horses, is highly recommended. X-ray evaluations and other veterinary assessments should be documented and included in the contract. The veterinarian is liable for their findings, adding a layer of protection for the buyer.
7. Can liability be excluded for the horse seller?
Liability exclusions are generally permissible between private parties. However, commercial sellers cannot completely exclude liability. They remain liable for a “used” horse (older than six months) for at least one year. For foals, the standard legal warranty period of two years applies, as a foal is considered a “new object” under German law. Buyers should carefully review contractual terms like “purchased as seen and test ridden,” as they can severely limit liability claims.
8. Can the limitation period be shortened in a horse purchase contract?
Although contracts often attempt to shorten the limitation period to three or six months, such clauses are generally invalid when selling to consumers. Legally, the seller is liable for a period of two years from the horse’s delivery. Claims must be asserted within this period.
If the seller has deliberately misrepresented facts about the horse, the limitation period extends to three years from the end of the year in which the contract was signed. This provision underscores the importance of carefully drafting contracts and documenting agreements.
9. Ineffective Contract Terms
Purchase contracts often contain general terms and conditions, but not all of them are legally enforceable. According to Attorney Ackenheil, pre-formulated agreements that significantly disadvantage one party or are unexpected may be deemed invalid. Buyers should be aware that these issues are often only resolved through lengthy and costly legal proceedings.
10. What should I consider when buying a horse from abroad?
Purchasing a horse from another country presents additional challenges. If a defect arises within the warranty period, the buyer’s claims usually need to be asserted in the seller’s country. European regulations provide exceptions, but only if the seller actively targets buyers in a particular country. This issue often requires legal proceedings to be clarified.
11. Data Protection & Social Media – What Can Be Published?
Social media plays an increasingly significant role in horse sales. However, buyers must be careful not to post photos or videos of a horse they have only test ridden without the owner’s permission. The seller retains copyright over these images, and legal actions can be taken if they are used without consent.
Once the horse is legally purchased, the new owner is free to post about their horse on social media. Until then, using the seller’s images without permission can result in costly legal disputes.
