Lease to Buy Horse Agreement

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A lease is a specific type of contract. A contract is a written or oral agreement with certain conditions between two or more people (or companies) that promises to do something in exchange for a valuable benefit called in law “consideration”. Contracts do not need to be in writing to be enforceable. However, if a dispute arises, it is often difficult to prove the existence and terms of an oral contract. Therefore, leasing contracts should be concluded in writing where possible. Never declare that a horse is bombproof, that it will never turn around, or that it is ideal for children and that it is gentle. It`s a responsibility you don`t want. It is easier to say that the horse has no vices that you know, and that it has never behaved inappropriately since you owned it. That being said, reveal the vices or bad habits of the horse. While the above is not a complete list of what should be included in a lease agreement to purchase or purchase of installment horses, it does contain some of the issues. Once upon a time there was a handshake and a verbal agreement required between the buyer and the seller.

Nowadays, written agreements are the norm in many sales. Horse sales are no exception. Renting a horse is not an easy process and should not be taken lightly. Since the horse still belongs to the seller until this final payment – or any other agreement – is made, the seller must ensure that the horse is cared for in accordance with its specifications. The buyer who rents the horse until final payment or any other agreement must understand this. As a buyer, you need to pay attention to the following elements in a rental agreement: name, age, color and sex of the horse, as well as a good description. Get copies of all health exams, vaccinations, and records from the veterinarian. Have a veterinary exam done before you buy to test for lameness and other health problems. Consider language that reflects the types of warranties and representations that may be made under the agreement.

For example, if the seller assures that the horse is in good condition, all health and vaccination records have been provided to the buyer, that a purchase contract will be made available to the buyer upon full receipt of the purchase price, and that the horse is sold “as is” without express or implied warranties. Pay attention to when these warranties come into effect, e.B. at the time of entry into force of the agreement and transfer of ownership of the horse. Now that she thought there was a significant probability that she would buy the horse, she wanted her monthly lease payments to be incorporated into the horse`s final purchase price. So, before deciding to make such an agreement, you need to consider the benefits and what can go wrong. The cost of a horse lease is usually determined by the amount of the horse`s value. For example, a full one-year lease is usually between 25 and 30% of the value of the horse. A $5,000 horse costs between $1,250 and $1,500 to rent for a year. A horse lease is an agreement whereby a horse owner grants another person (the tenant) access to a horse in exchange for an agreed payment, which partially covers things like food, feed, and veterinary bills. The person to whom the horse is rented (usually the owner of the horse) is called the “owner”. The person who rents the horse is called the “tenant”.

Types of leases She was about to sign another lease for the coming year, and after two years of successful leases, she decided that she really liked the horse and maybe she wanted to buy the animal. Now that she thought there was a significant probability that she would eventually buy the horse, she wanted her monthly lease payments to be paid into the final purchase price of the horse. Even if the landlord has not obliged the tenant to take out insurance for the horse as the duration of the rental contract, the tenant may be advised to take out such insurance. In this way, the tenant protects himself in case the horse becomes lame or dies while in his care. This is especially important if the horse is very valuable and the tenant could not afford to buy a replacement horse for the owner. Summary In most cases, pre-purchase checks (PPE) are performed after a buyer has a purchase agreement signed in hand. Otherwise, the seller could change their mind about selling the horse or sell the horse to another buyer after the buyer has invested time, money and energy in the PPE. In a semi-lease, the costs are shared equally between the tenant and the lessor, in exchange for the tenant`s right to care for and ride horses 50% of the time. In the case of a partial lease, the tenant has the right to ride a predetermined number of times a week, against payment of a percentage of the cost of the horse or, in some cases, a flat rate. Maybe the buyer would rent anyway and this way offers a reasonable option, if the horse is really “the horse”, then the money flows into the purchase.

In the case of my client, the horse received a lot of training in the previous years of the lease and increased its mileage in the exhibition ring, which is mainly due to the tenant. As a result, the value of the horse has increased over time largely due to the hard work of the tenant. It is no coincidence that the selling price has also increased. In short, the buyer does not want to be in full rental or retrospectively in a situation and ask for the purchase price. How does this work in a lease-to-purchase or equine installment purchase agreement? Some options: (a) Waiver of PPE; (b) compliance with the PPE before the date of entry into force or transfer of ownership; or (c) at a later date in accordance with the Agreement. Before deciding to enter into such an agreement, you need to consider the benefits and what can go wrong. The most important aspect of negotiating and designing a horse lease is to ensure that all parties are aware of their rights and obligations under the lease. Once this is achieved, all parties should be able to focus on the horse and enjoy the benefits of the lease! The risk of loss section must be carefully analyzed. Consider what happens if the horse gets sick, injures itself or, worse, dies during the horse`s lease-purchase or installment purchase agreement. Any agreement must include language that addresses the possibility of injury or death of the horse, and possibly that the buyer is liable if, among other things, the horse is injured or dies while the horse is in the care, care and control of the potential buyer.

This provision should specify that it is effective from the moment the horse leaves the seller`s property and continues until the horse returns. Depending on whether you need the potential buyer to purchase insurance, you should add the sentence that the potential buyer will cover all costs not covered by the seller`s mortality, major medical and loss of use insurance related to an accident, illness or any other danger, including the death or permanent disability of the horse. In addition, this driver/lessor/buyer is responsible for all costs/costs arising from his negligence. A contract for the purchase of a horse with instalment payments or a lease agreement on purchase may contain a clause according to which the buyer grants a security right in the horse to secure payment of the purchase price. The seller would take a security right to assert its rights against the guarantee (the horse) in the event that the debtor breached the obligation. For example, such a clause will protect the seller if the buyer has stopped making a payment, if the seller has had to repossess the horse, or if the horse has been injured, fallen ill or dies before the buyer has made a final payment. The agreement itself may constitute the security contract, and then the bid may be required in accordance with the Unified Commercial Code and the requirements of the jurisdiction. .