The borrower must ensure that the owner knows where the horse is being held and inform the owner if he moves the horse for any reason – the owner must have access to the horse at all times during the loan. Horse owners may end up with a horse they grew up on, but don`t want to sell. In these situations, lending can be the ideal solution, as it allows the owner to keep ultimate control of the horse`s future, while someone else takes care of the daily work and care costs. The contract should specify certain key conditions that should be met by the borrower and, if this is not the case, the horse must be returned and the loan terminated with immediate effect. This standard contract for horse shares is for guidance purposes only and legal advice should be sought to ensure that any contract is legally binding. Legal contracts are usually made effective with some sort of consideration for change of ownership, normally money. Since a loan does not involve it, it must be signed and certified by a third party who is not related and designated as an “instrument” to give it legal value. Each party must then securely keep a copy of the document containing all signatures. For a loan to work well, both parties must agree on their responsibilities and ensure that all eventualities are foreseen, especially what will happen if the loan ends unexpectedly. We strongly recommend that you enter into a written agreement.
Make sure the agreement is acceptable to both parties. Don`t accept something if you don`t intend to put it into practice or you don`t agree. A credit agreement is an important way to reduce risk and protect the owner, the borrower and, of course, the horse. 5. Will the person lending the horse pay the owner for the loan? If so, how much, when and how will it be paid? The reasons for terminating a credit agreement are different. 9. Who pays for what – and if the horse must be insured (this should be stated in the contract), who pays the deductible? The law requires that a passport remain with the horse. Therefore, the passport must be kept by the person who has the primary maintenance of the horse if it is not the owner. If a horse is loaned and transferred to a new farm, the lender must have the original passport.
Many homeowners are uncomfortable, but there are a number of steps you can take to protect yourself, including: the duration of the loan must be recognized at an early stage and clearly defined in the contract. A trial period of a few weeks can be helpful, during which the horse can be returned and the loan terminated in the short term. It is appropriate to fix either a fixed term which the parties may extend, or a loan in progress with a specific notice. Possible restrictions on the activities of horses during the loan: the jump should be limited to frequency or size or should only be limited to certain levels or types of competitions. The contract should contain confirmation by the borrower that horse riding and maintenance is a risky activity and should be performed at their own risk, with the borrower having to take out personal accident insurance where appropriate. The BHS creates a free horse credit agreement. We do not think it covers all practical issues. The designer of the Net Lawman version has owned and horses for 40 years. It has taken into account many other options based on the practical experience of oneself and others. The result is a document that better protects your interests.
Our version is easy to complete and very extensive. 6. How long will the loan last and what will happen when the loan term ends? The passport must designate the owner as the registered holder, but must be held by the borrower to allow for travel and contests.