Julius Paulicka, lawyer in conversation with Jana Hofmann[1]
How did you get into equine law?
It all started with my own riding. My parents have been running their own breeding and riding business for more than 50 years. After studying law in Bielefeld (Germany), I completed my legal internship with a colleague who specialises in equine law, and one thing led to another.
Based on your experience, can you tell us what we need to consider when buying a horse? Are there specific formal requirements for horse purchase agreements?
No, the horse purchase agreement is not subject to any specific formal requirements and can therefore also be concluded verbally. However, as the purchase of a horse is a significant matter, it is advisable to conclude a written purchase agreement. All essential points of the agreement should be included, which may be advantageous later on for reasons of proof.
What should be included in the purchase agreement?
The horse should be clearly described. Accordingly, the following points should be included in the purchase agreement: name of the horse, breed, year of birth, gender, colour, UELN (Universal Equine Life Number). It is also useful—at least from the buyer’s point of view—if the purchase agreement mentions whether the horse is experienced in competitions, safe in cross-country riding, and easy to shoe.
The buyer should request a contractual warranty from the seller. Accordingly, the current condition of the horse should be specified in the contract. The state of health should be determined by a pre-purchase examination (AKU), as the seller is only liable for warranty to the extent that it has been assured to the buyer (cf. Art. 198 OR). This contrasts with German law, where the warranty period can be up to two years (business-to-consumer) and is enshrined in law.
Transfer of ownership
It is also important that the purchase agreement specifies when the benefits and risks associated with the animal are transferred to the buyer and when the buyer receives the ownership documents. The transfer of benefits and risks usually takes place upon signing the purchase agreement, while the handover of the horse and, if applicable, the ownership documents takes place after the purchase price has been paid in full. It should also be mentioned here that it can be advantageous to list both the purchase price and the method of payment in the purchase agreement. Is the purchase price to be paid in instalments or in a lump sum, etc.?
How can unpleasant surprises be avoided?
Before concluding the purchase agreement, the horse should be visited several times and, above all, test ridden. You should get a comprehensive picture of the animal: What are its character traits, and what is its current condition? Has the animal been regularly vaccinated and dewormed? As mentioned above, the animal’s current state of health should be determined by an AKU (animal health check) carried out by an independent veterinarian of your choice, and the AKU report should be made part of the contract. After the horse has been handed over, the buyer should observe the animal closely again in its new environment. If, for example, the buyer finds the horse’s behaviour strange, this should be reported to the seller within nine days (see Art. 202 para. 1 OR). In addition, an examination of the horse by an expert should be requested from the competent court. Upon expiry of the above-mentioned period, the buyer is generally excluded from any warranty claims, unless the defects were concealed despite inquiries and the buyer was thereby deceived. The safest option for the buyer is likely to be a trial purchase. This allows the buyer to return the horse at any time during the trial period without giving reasons. However, very few sellers agree to this (and rightly so), as they have no control over how the horse is handled or ridden during the trial period.
What are the legal specifics of riding partnerships?
Riding partnerships entail rights and obligations for both the horse owner and the rider. It is therefore advisable to conclude a written contract between the two parties. There are no specific legal regulations, but as a rule, the legal provisions governing loans for use or rental agreements apply, depending on whether the riding partnership is remunerated or free of charge.
Accordingly, the contract should specify when the rider is allowed to ride the horse and under what conditions. How much does the rider pay the horse owner, and are there any other tasks expected of the rider?
Furthermore, the horse owner’s expectations, or the extent to which the horse may be used, should be specified for the rider. For example, what the riding share includes, whether the horse may be ridden without a saddle, or whether jumping is permitted. It should also be noted that the rider should extend their personal liability insurance to cover riding other people’s horses. This is important because regular personal liability insurance does not cover damage to the horse.
[1] This text appeared in the magazine zürichsee Aktuell, No. 39, p. 16.
https://zuerisee-aktuell.ch/bps-legal.html
