Out of all the claims involving horses, the ones which happen most frequently are horse purchase disputes.
These disputes fall into two distinct categories, commercial and private sales.
As a buyer you need to be sure that the horse you are buying is of satisfactory quality, fit for intended purpose and matches the description. The seller has no such obligations. This is known as “buyer beware”.
In this situation, the buyer will need to bring a claim under the law of misrepresentation. A misrepresentation claim consists of five components:
(1) the seller (or the seller’s agent) must make a representation of fact about the horse;
(2) the buyer must rely upon that representation; and
(3) the representation must induce the buyer to buy the horse;
(4) the representation must be untrue/false with the result that it caused;
(5) loss as a result.
Typically, a misrepresentation relates to behavioural issues. If a seller represents that the horse does not have any behavioural issues, nor has it had behavioural issues in the past and, in reliance on these representations, you buy the horse, only later to discover that the horse does have a behavioural issue, you may have a claim against the seller for misrepresentation. This could result in rescission (cancellation) of the agreement, and recovery of the price paid for the horse along with other expenses you incurred due to buying the horse, for example, tack, livery or insurance.
It is advisable to have the horse seen by your veterinary surgeon pre-purchase, known as the five stage pre-purchase veterinary examination, which is designed to address clinical defects and, to a lesser degree, behavioural ones.
It is always advisable to ask the buyer the details of the vet surgery responsible for treating the horse and for the seller to give permission to the vet practice to reveal to you details of all behavioural and physical conditions the horse might have been treated for.
If you have bought a horse which you would not have done had the seller made known to you of the behavioural or physical conditions, then you will be entitled to claim the purchase price back along with any other financial costs incurred as a result of purchasing the horse.
If you buy in the course of business, from a dealer then you might have protection from the Consumer Rights Act 2015. The Act defines a consumer as an individual acting for purposes that are wholly or mainly outside their trade of business or profession. The Act defines the seller as “a person acting for purposes relating to their trade, business or profession”.
The Act implies in the agreement to buy terms of-
Satisfactory Quality
The horse would be deemed satisfactory quality, if it met the standards that a reasonable person would find satisfactory.
Fitness for purpose
If prior to the buyer agreeing to buy the horse, the buyer makes note to the seller any particular purpose for which they are buying the horse, then the contract is treated as including that the horse is reasonably fit for that purpose.
Where the horse does not conform to the contract because of the breach of terms of quality or fitness for purpose, the buyer has the following rights:
- To reject the horse within 30 days;
- The right to have the horse replaced;
- The right to a price reduction or a final right to reject.
If the horse does not conform to the contract any time within six months from the date of delivery, the horse is taken to have not conformed at the date of delivery.
Finally, it is always advisable to draft a purchase agreement recording the terms of purchase. This document will be useful if a dispute arises after purchase.
If you need advice on a purchase or sale contact the equine law services team at Jacksons.
For more information on Jacksons’ Equine Law Services or for litigation and dispute resolution advice, call Emily Skillcorn in the litigation team on 01642 356549.
