Selling a Horse
You can ask our solicitors for advice on selling a horse using the question box on the front of our website or the following article may answer your questions.
When selling a horse you have certain obligations. In terms of the law, horses and all other animals are dealt with the same way as goods. Therefore the law that relates to the sale of goods is applicable to buying and selling horses. When dealing with horse sales, the law will approach the sale as being a purchase of unknown quantity.
Furthermore, as a general rule, the principle of caveat emptor applies which means ‘let the buyer beware’. Consequently any purchaser will be primarily responsible for checking the suitability and quality of the horse before they enter into any agreement to purchase the horse. If a horse turns out to be not as described, liability from the sellers perspective will depend largely on the terms of the contract, what was agreed and when the contract was made.
Contract Terms
As with purchasing any ‘goods’ contracts of sale include two terms. The first is ‘express terms’. An express term is one that has been specifically agreed between the parties. The second is ‘implied terms’. These are the terms which are implied either through conduct or the law.
Within the agreement for selling a horse, the express term will be that the seller will sell and the buyer will buy at an agreed amount for the horse. In many instances, nothing further may have been said by either party in the sale at the time when the agreement was made. That being said, in some circumstances, the law implies certain terms in the contract. This is applicable let’s say when using the Sale of Goods Act, any amendments within the Sale and Supply of Goods Act 1994 will also apply.
Sale during the course of business
Under the Sale of Goods Act 1979, certain terms are implied for the sale of goods. These terms usually relate to the quality of the goods when they are sold during the course of business. When it comes to buying a horse, the rules are a little different. This is because when you purchase an animal, you cannot be certain of its quality. As a result the Court may be reluctant to imply terms which relate to the quality of the horse, unless there is a significant defect which is known to the seller at the time or it is very obvious to the seller.
When an animal is purchased, there are certain terms which are relied upon by the buyer when they agree to enter into the agreement to purchase. If the seller sells an animal and this sale is through a business, the purpose of the purchase is made known to the seller and the buyer relied on the skill and judgement of the seller, there is an implied term that the animal was deemed to be ‘fit for purpose’. Selling a lame horse is therefore not allowed because a horse in this condition is not classed as being fit for purpose.
If therefore the buyer made it clear that the horse they intended to purchase was for riding, the seller may be found to be liable.
Representation
Before you purchase a horse, it is often the case that the buyer will ask questions and the seller will make representations about the condition or temperament of the horse. Whether these statements form a part of the contract is a grey area. It will depend on each case as to how these statements were made and what was said or implied.
If the buyer placed a great deal of importance on the statement at the time of the contract or if they relied on the reasonable skill and judgement of the seller, it often follows that the seller is bound by this statement.
Breach of Contract
Where the seller breaches a term within the contract, there are certain protections for the buyer. Within the contract, the terms are classed as warranties or conditions. It often follows that a condition is a term contained within the contract and these are fundamental to any contract. If a condition is breached, it is said that the contract is referred to as being repudiated.
This means that the contract has ended and the other party will be able to discharge the contract. In addition the aggrieved party can also commence a claim for damages where necessary. A warranty is a more minor term and if this is breached the third party can simply bring a claim for damages.
Within a contract, whether a term amounts to a condition or warranty will be determined by the individual facts of each case.
The Sale of Goods Act 1979 states that a term in a contract which relates to the quality of the product are regarded as being conditions if the goods are being sold during the course of business.
A Patent Defect
In terms of a patent defect, a seller cannot be liable. A patent defect is one that is so obvious that the purchaser should have noticed the defect themselves at the point of sale. If it was obvious that the horse had some kind of defect, and the buyer went ahead with the purchase, you cannot then make any type of claim for damages or otherwise.
Misrepresentation
If the seller made any kind of false statement when you bought the horse and this was a false statement of fact that induced you to enter into the contract to buy, you may be able to claim damages against the seller for misrepresentation. In this instance, the Court may instruct rescission of the contract. This in effect aims to put all parties back in the same position they were in before the transaction occurred.
Courts have the power to rescind the contract but there is no automatic right to rescission.
As with any product, buying a horse is protected under the Sale of Goods Act. Any horse that you buy should be fit for purpose and if it is not you may be able to seek damages and/or rescission of the contract.