If there is one piece of advice that is desperately needed in the horse industry, it is that whatever the transaction or whatever the agreement, put it into writing. Although it may appear more "friendly" or less antagonistic to rely on a handshake and an oral agreement, when the unforeseen happens, the results are hard feelings, broken friendships, and sometimes litigation.
Imagine the following scenario:
Jane has a mare who is a pet and would make a good brood mare. Jane would like to breed the mare, but she can't afford the stud fee or the transportation and care of the mare during the breeding and foaling. The owner of the stallion lives 250 miles away and is willing to care for the mare for one month after the breeding at no extra charge. Kathy has a hobby farm and would love to have the experience of taking care of the mare and being there for the resulting birth. Kathy says that she can take care of the mare while she is in foal at nominal expense at her hobby farm. Kathy and Jane agree that they will share equally in the stud fee and use Kathy's trailer for the transportation. The mare will stay at the stud farm for the one month, then Kathy will trailer the mare to her hobby farm and provide the care for the mare through the birth of the foal. Jane (who has trained one other horse and feels she is well qualified to train another) will train the foal. They will then sell the foal for a profit and split the proceeds. Nothing is put into writing. Jane arranges for the breeding and pays for one-half of the fee. Kathy and Jane trailer the mare to the stud farm. One week later the stud farm owner calls the farrier and the vet to treat the mare. The mare caught her leg in the fence when she was turned out. At the time, neither Jane nor Kathy were available by telephone and the mare needed immediate care. The farrier and the vet bill the farm owner for their services. At the end of the month, Jane calls Kathy to arrange the transportation to Kathy's hobby farm. Kathy is on her honeymoon and cannot be reached; The stud farm owner calls Jane and demands payment for the farrier and the vet and tells Jane that Kathy did not pay for the other half of the breeding. He also tells Jane that he wants more money for the breeding because the stallion's price for breedings has gone up. He wants payment in full for those amounts or will not release the mare to Jane. He also wants board money for every day the mare is on his farm over the one month previously agreed upon. Two weeks later Kathy returns from her vacation. She tells Jane that her new husband is allergic to horses, she sold the trailer, and the deal is off. The axiom is that if it can go wrong, it will. When it goes wrong and you do no have anything in writing, it is fertile ground for lawsuits with no clear winners on either side. Jane has very little protection, if any. She relied on oral agreements, subject to the interpretation and honesty of those involved. There have been instances where oral agreements have been upheld by the courts. The actress, Kim Bassinger, was held to an oral agreement to appear in a movie and assessed substantial money by the courts for breaking the contract. Even though the movie company won the case, the emotional and economic cost of the lawsuit was staggering to both sides. If the agreements with Kathy and the owner of the stallion had been in writing and the "what ifs" addressed, there would be a clear definition of obligations. For example, the stallion owner would not have been able to change his price for the breeding. It could have been designated who was responsible for the vet and farrier fees in the event of an accident while the mare was at the stud farm. Kathy could have been held to her side of the agreement or required to pay for alternate board and transportation as well as her half of the breeding fee. What happens to the foal? What if Kathy says she still has rights in the foal even if she did not keep up her half of the agreement? It is not as far fetched as it sounds. Jane's issues are similar to those I have heard from people calling me for assistance.
To put it into writing is to establish and document each persons rights and responsibilities and to address contingencies in the event of potential future issue.
With nothing in writing a $1,000.00 deal can turn into a $5,000.00 headache.
About our Guest Author: Barbara Halper is also an equine attorney and horse owner who will be providing her "legal" insights on relevant equine and equine-related issues.