The Legal Pitfalls of Buying & Selling Horses
 Deborah Hargreaves, a Partner specialising in Equine Litigation at Edmondson Hall Solicitors & Sports Lawyers examines the problems facing both Buyers and Sellers of horses and ponies.
An important point for both the Buyer and Seller of horses is whether or not the Seller sells the horse in the course of a business (e.g. a professional dealer). If a Seller does sell in the course of a business the Seller will have to comply with the Sale of Goods Act 1979 (as amended) which affords the Buyer (as a consumer) greater protection and will allow the law to intervene to rectify any unfair sale (for example because the horse is not reasonably fit for its purpose or of satisfactory quality). It is not always obvious whether a Seller is acting in the course of a business, but a Court will examine all the circumstances in any matter, and generally takes a wide interpretation.
If the sale takes place between two private individuals, the Buyer will still be able to rely upon the Law of Contract if there has been any breach and specifically the Misrepresentation Act 1967. Where a horse has been described in an advertisement or the Seller has made oral representations to the Buyer about the horse prior to purchase (for example, describing the horse as schoolmaster), the Seller is making ‘representations’ about the horse and if those representations are discovered to be untrue after purchase, the Seller will have misrepresented the horse to the Buyer and the Buyer will then be entitled to reject the horse or alternatively claim damages.
Whether the Seller sells in the course of a business or not, it is the Buyer’s responsibility to carry out a physical examination of the horse. The Buyer will not have any comeback against a Seller for a physical defect in the horse that could have been revealed had they examined the horse. Sensibly, most Buyers will have a Horse vetted prior to sale. If a physical defect later comes to light that ought to have been revealed by the vetting, the Buyer’s course of action will be against the vet who carried out the vetting rather than the Seller.
Unfortunately it is a common misconception on the behalf of Professional Sellers that inserting the phrase “sold as seen” in a contract or receipt will protect them from any comeback for a physical defect, however, that is not correct for the Professional Seller. If a defect (e.g. navicular) is discovered post sale that could not have been reasonably discoverable upon examination and the Buyer is able to establish that the defect would have been present at the time of sale, the Buyer will have a claim against the Seller by relying on the Sale of Goods Act (because arguably, the horse may then not be either of satisfactory quality or reasonably fit for its purpose). A 2002 amendment to the Sale of Goods Act has increased and made more practical the remedies available to Buyers. A Buyer may now reject goods (a horse) at any time during a two year period after sale, as long as he brings the defect to the Seller’s attention within 2 months of discovering it. Further, the law now says that if at any stage within 6 months of the sale, the horse does not (or no longer) ‘conforms’ with the contract, the horse will be treated as having not conformed at the time of sale and the Buyer can reject the horse or seek damages without having to demonstrate the lack of conformity. However, at any time after 6 months of the sale the Buyer will have to demonstrate the horse does not conform to the particulars of the contract.
Against a Private Seller, the old adage “Let the Buyer Beware” is disappointingly (for the Buyer) accurate and the Seller is protected. It is for the Buyer to satisfy himself that the horse is of satisfactory quality and fit for its purpose.
Aside from physical defects, a behavioural defect or vice may be discovered in the horse after sale. In 1839, the Court considered the case of Scholefield v Robb (1839) and decided that a vice in a horse is a defect in the temperament of the horse which makes the horse dangerous or diminishes its usefulness, or a bad habit which is injurious to its health and is which is not ordinarily found in a horse. There are behaviours that are generally accepted as vices (such as rearing or bucking) which will impair a horse’s ability to ‘do its job’ and if a Buyer is concerned about any particular vices (that are not revealed following the trial of a horse) or he wishes to ensure the horse’s suitability for a particular purpose, he should ask the Seller (preferably in writing) if any particular vices exist in the horse and explain to the Seller the purpose for which the horse is being purchased. If the Seller fails to mention a behavioural defect in the horse that would prevent it from being able to perform that purpose the Buyer will have a cause of action. The Seller should protect themselves by giving full disclosure about an animal’s vices should they exist or unsuitability for any job that the Buyer wishes to purchase them for. It will be very difficult for a Buyer to have comeback against the Seller who has warned him in advance of any vices the horse may have. From the Buyers point of view, a Seller who fails to address any questions raised should be treated with caution.
A receipt of sale can be provided by the Seller and it should set out the price paid, whether VAT was charged (ensuring it complies with the relevant VAT legislation), the date and a description of the horse, which can include detail of the representations made about the horse prior to contract. The receipt ought to be duplicated and then both copies dated and signed by both parties, who should both retain copies.
Deborah Hargreaves frequently acts on behalf of both Buyers and Sellers of horses as well as being involved in many Personal Injury claims involving horses. Edmondson Hall Solicitors’ Property Department specialises in the sale and purchase of equestrian properties and farms. Please contact Anna Hall on 01638 564483 or alternatively Anna can be emailed at ah@edmondsonhall.com for more information on the services Edmondson Hall can provide.
Deborah Hargreaves can be contacted direct at: dh@edmondsonhall.com
or by telephone on (01638) 564485 | 
