A Guide To A Loan Agreement For Horses

by Sarah Macey

When you put your horse out on loan, it is essential that you set up an agreement that sets out in detail what the person loaning the horse out expects the new owner to abide by to the mutual benefit of the horse, the owner and the person looking to take the horse on loan.
Set out below is an agreement that may be made between the owner of a horse and the person agreeing to take it on loan. it is purley for guidance only and when amended and completed with your own particulars and signed by both parties it will form a legally binding agreement. However, if you are lending out a valuable horse and/or if the person to whom you are lending it is unknown to you, you are strongly advised to take up references and to ask your legal adviser to check the completed document.

NOTE:
Plain text should be included; bold italics shows where amendments are needed; italics only are sample clauses you may wish to include.
The AGREEMENT
This agreement is made on the: (date)
Name & Address
Description and name of horse as identified in the diagram/photograph attached)
The HORSE is to be used as (appropriate)
(1) The loan period will start on ……………………………………………
until…………………………………………..
.1) Extended for a period of time to be agreed between the parties or1.2) The HORSE is to be returned to the OWNER. Insert DATE) between the parties (Insert Owner’s) (hereafter referred to as the OWNER) and (Insert Borrower’s) (hereafter referred to as the BORROWER) for the loan of (insert- e.g. 15.0 hand high bay gelding aged 12 years. with white blaze and white sock, off hind, known as Prime Gal – also(hereafter referred to as the HORSE.)a companion/riding horse/child’s pony a not for hire or reward. Insert DATE) and continue for a period of 12 months Insert DATE) when the loan agreement may be:Delete or amend if.)
(2) The Loan may be terminated on or before this date if:
2.1) The BORROWER no longer wishes to loan the HORSE. The BORROWER will inform the OWNER in writing, no less than 30 days before the HORSE (and all associated equipment as detailed in Section 12) will be returned in a good condition to the OWNER.
2.2) The OWNER believes the HORSE is not being treated or looked
after in the correct manner. The OWNER may at his own discretion give
the BORROWER a specific period of time during which the BORROWER
must rectify any reasonable issues that the OWNER may have. The OWNER hereby reserves the right to remove the HORSE at his own
expense from the BORROWER with no notice whatsoever.
(3) The HORSE is to be kept at ……………………………………………………..
moved to alternate accommodation.
(4) It is understood by the BORROWER that the HORSE (for example summer, requires his hay soaked or anything similar)  insert livery yard/farm/borrower’s premises as) unless it is agreed by the OWNER in writing that the HORSE may be insert conditions of care — must be stabled in the winter at night, requires restricted grazing in the field in early summer.
(5) The BORROWER will allow the OWNER access to the HORSE at the address specified in (3) at any reasonable time in order that OWNER may check that the horse is in good health.
(6) It is understood by the particulars as applicable  must be turned out with at least one other horse/pony – has Recurrent Airway Obstruction (RAO) which must be managed appropriately – is allergic to penicillin, – becomes excitable if galloped in company – particularly out hunting, – can be difficult in traffic i.e. large or noisy lorries, buses and other vehicles. (or anything else the BORROWER needs to know to safeguard both the horse’s health and well-being and his own.) LOANER that the HORSE….. (examples – insert own)
(7) The BORROWER is responsible for ensuring prompt and required veterinary treatment by a registered and qualified veterinarian which includes routine and timely vaccinations for flu and tetanus the HORSE at all times and the liability  for payment of the aforesaid veterinary treatment lies solely with the BORROWER. The BORROWER will notify the OWNER if the horse suffers any serious illness or injury and will notify the owner in advance if possible of any requirement for the HORSE to have surgery or general anaesthetic.
(8) It is understood by the BORROWER that he is responsible for ensuring that the HORSE is fully insured for veterinary treatment, third party liability, travelling, saddlery and tack, etc at all times for its full value and the liability for payment of the aforesaid insurance lies solely with the BORROWER. If the BORROWER fails  to insure the HORSE and its effects the BORROWER assumes full liability for any  loss or damage, including 3rd party legal liability. Reclaim the premium from the BORROWER, & anything else your horse is vaccinated against) for(The OWNER may have to arrange the insurance  and consult your insurer.)
(9) It is understood by the BORROWER that he is responsible for ensuring that the HORSE is suitably shod at all times and the liability for payment of the aforesaid shoeing lies solely with the BORROWER.
(10) It is understood by the BORROWER that at NO TIME is he the registered OWNER of the HORSE and under no circumstances whatsoever is he permitted to Loan, Lease or Sell the HORSE to any third parties.
(11) The horse is not permitted to take part in any of the below mentioned activities under any circumstances whatsoever: (add or delete as required)
11.1) POLO
11.2) HORSEBALL
11.3) HUNTING
11.4) Any other activities of any kind not covered under the INSURANCE
11.5) (Or anything you don’t want the horse to do – ensure they are listed)
11.6) (If a mare or stallion, you will want to add details about breeding use.)
(12) The following pieces of equipment will be supplied by the OWNER to the BORROWER and it is understood and agreed by the BORROWER that all items are in good working order and free from any defects not specified below. The BORROWER agrees that at the time of termination of the contract, all the equipment listed below will be returned to the OWNER in good working order.
12.1) Saddle – security marks
12.2) Bridle – any security marks
12.3) Rugs
12.4) state make, size, colour, condition, approx. value and any)state make, size, bit,  colour, condition, approx. value and)State quantity, size, type, colour, repairs etc)(Anything else that you give with the horse but MUST be listed.)(13) It is understood by the BORROWER that horse care and riding carry their own inherent risks and at no time can the OWNER of the horse be held responsible for anything at any time (except as detailed below.)For example (add/delete as appropriate)
13.1) If the BORROWER is going on holiday and the owner has agreed to look after the horse
13.2) If you have agreed to go 50/50 on vaccinations/shoeing
13.3) If the horse damages his rugs in the field (as rugs are often not covered under saddlery and tack insurance)
(14) The OWNER agrees that if a VETERINARY SURGEON advises IMMEDIATE euthanasia of the HORSE to prevent further suffering in the case of severe injury, and the OWNER cannot quickly be contacted, the BORROWER may give permission to the VETERINARY SURGEON on the OWNER’S behalf.

Signed
……………………………………………………………………….. (THE OWNER’S NAME PRINTED HERE)
Witnessed by
………………………………………………………………………………………(Witness’s name & address here)
…………………………………………………………………………(THE BORROWER’S NAME PRINTED HERE)
………………………………………………………………………..(Witness’s name & address here)
Witnessed by
If you want to have witnesses to the agreement then there should be two. One should be known to either party. They should witness the signature and their addresses should be included. The OWNER and the BORROWER should each retain a signed copy of the agreement.
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I trust this guide is useful to you. As I mentioned earlier, to ensure that your agreement is complete, always consult a qualified solicitor and have them work with you to draw up your own individual agreement. You can’t be too careful. Time spent fully preparing your agreement could save you a lot of heart ache in the future.

The Stable Doctor
http://primestables.co.uk/news
Advice is given without legal responsibility

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