Legal Aspects of Horse Management
LESSON
FIVE
Put It In Writing: The Value of Contracts
Introduction - How Contracts Can Enhance Your Business
The
horse industry evolved primarily as a local business where deals were
documented with a handshake.
Many horsemen still view contracts as
unnecessary and impractical, and they continue to rely on reputation and
in-person inspection of horses and goods to avoid being cheated. However, the horse industry is no longer
local. As a horse owner, you can sell a
horse to a buyer in a distant state or country, or breed your mare to a
stallion located on a different continent.
The widespread use of computers has also made written and electronic communication
more popular. As a result, more and more
savvy horsemen are using contracts to prevent misunderstandings and provide
legal recourse.
For equine professionals, contracts
tailored to their business provide certain key benefits.
Contracts enhance your professional image
by making you appear more organized and businesslike. They also help you avoid disputes with your
clients and suppliers by clearly setting forth who is responsible for what (and
when). When a dispute does arise, your
contracts can also serve as valuable evidence of what your agreement was.
Image Is Everything. If your contracts are well-written and easy
to understand, they can enhance your image as a seasoned professional. As a horse owner, which trainer would you
feel more comfortable with – the trainer who has a big reputation but won’t
write down his costs, or the trainer who presents you with a training agreement
that specifies what the trainer will do and how much it will cost?
Wave Goodbye to Looky-Loos. In every equine business, there are folks who
want something for nothing, and if you are too generous, you can find yourself
providing goods or services for free.
Presenting potential clients with a contract early on in the relationship
can help you sort out the paying customers from the tire-kickers.
Types of Equine Contracts and Their Essential Elements
Essential Elements of Every Contract
The following items should be included
in every contract, no matter what the subject matter.
Some of these terms may seem obvious,
but one or more of them are often excluded or incomplete. This section is designed to
assist you in drafting simple contracts and in evaluating contracts that you
are offered. You may wish to hire
an attorney to review what you have drafted and/or create customized contracts
tailored to your business.
What
is the Contract About?
Why
are the parties entering into the contract?
Is it a boarding contract, employment agreement, horse sale contract or
something else? The contract title
should be simple and self-explanatory, such as “Boarding Contract.”
Who
Are the Parties and How Can They Communicate with Each Other?
Many
disputes in the equine industry involve communication failures. To help prevent communication mishaps, the
contract should list appropriate contact information and specify the acceptable
forms of notification among the parties.
For example, should the parties email each other? How about fax? At a minimum, the contract should include
each party’s first and last name, mailing address, and telephone number. You may also wish to include email
addresses, cell phone numbers, fax numbers and pager numbers.
All official communications under the
contract, such as delivery of original registration papers or payments, should
be sent via a method that provides proof of delivery, such as Federal
Express. For written correspondence, fax
machines that print confirmation sheets are also useful. Emails and phone calls, while convenient when
timing is critical, generally provide little assurance that the other party has
received the communication.
What
Have the Parties Agreed to Do – What, When and Where?
Each
item that the parties have agreed upon should be spelled out clearly in the
contract. For example, in a horse sale
contract, if the seller has offered to deliver the horse to the buyer, the
contract should state that and include a delivery address and delivery date.
How
Will the Parties Resolve Disputes?
In
the increasingly global horse industry, you may enter into agreements with
someone in another state or even another country. If a dispute arises under the contract, how
will you handle it? Will the parties
agree to mediation or arbitration? Where
can the parties sue each other?
Example: Big Thang supplements the income
from his training business by buying inexpensive horses, putting a few weeks of
training into them, and then reselling them at a substantial markup. He advertises the horses on several well-known
Internet sites.
Suzie Sucker sees one of Thang’s
horses, Ripsnorter, on the Internet and orders a video from Thang. She loves what she sees on the video, so she
emails Thang and makes arrangements to buy Ripsnorter and have him shipped to
her in Idaho. When Thang receives the
cashier’s check for the purchase price, he sends Suzie a bill of sale that
simply states, “Sold to Suzie Sucker, 1999 AQHA gelding Ripsnorter. Signed, Big Thang.”
A week later, Ripsnorter steps off the
trailer onto Suzie’s ranch. Suzie
notices right away that he has a club foot, something she didn’t see in the
video. She calls Thang and tells him she
wants her money back. Thang refuses and
points out that Suzie didn’t ask whether the horse had a club foot, only
whether he was sound (and he is). Suzie
wants to sue Thang, but doesn’t know whether she can sue him in Idaho, where
she lives, or whether she has to sue him in Texas, where he lives, Oklahoma,
where his ranch is located, or California, where she sent the cashier’s
check. If the bill of sale had a clause
specifying where the parties could sue each other, Suzie would not have to pay
an attorney to answer this question.
Contracts for Horse Buyers and Sellers
The
majority of legal disputes in the horse industry center around horse sale
transactions, and many of those disputes arise from mismatched
expectations. To help avoid these types
of disputes, a contract is essential. At
a minimum, a good sale/purchase agreement (also known as a bill of sale) should
address the following points, in addition to the essential elements of every
contract (see above).
Payment
of the Sale Price
In
traditional horse sale transactions, the buyer showed up with cash and a horse
trailer and the deal was completed when the horse’s tail disappeared down the
driveway. However, many of today’s horse
sales involve more complicated exchanges, such as deposits and installment
payments. Your contract should clearly
specify what the total purchase price is and how and when it should be
paid.
If the buyer presents the seller with
a deposit, the contract should specify the circumstances under which the seller
must refund the deposit (and when the seller can keep the deposit). If the buyer will make payments in
installments, the contract should specify the due date and amount of each
payment as well as which party bears the risk of loss of or injury to the horse
during the payment period, and which party is responsible for the horse’s board
and other expenses during that period.
Return
Policy
If
the buyer has any rights to return the horse to the seller, the contract should
clearly state the circumstances under which the buyer can return the horse and
whether the buyer can expect a full or partial refund or an exchange for
another horse. If the
seller has a “no returns” policy (which has long been the custom in US horse
sales), the contract should clearly state that fact to ensure that buyers
understand, especially first-time horse buyers. Smart horse sellers will specify in their
contracts that the sale is “as is” and without warranties of any kind. If the seller does make specific
representations or warranties about the horse, the contract should list them
and state that no other warranties or guarantees are given.
Trial
Periods
Trial
periods have become very popular because they allow a potential buyer to
evaluate a horse more thoroughly before agreeing to purchase him. However, a trial period can be a nightmare
for both buyer and seller if the horse is injured or dies during the trial
period. Every sale contract that
includes a trial period should specify who will be responsible if the horse is
injured or dies during the trial period.
Trial periods should be limited to short periods, such as a week, and
whenever possible, the horse should remain on the seller’s property during the
trial. Both of these factors will help
reduce the chances of accidents and misunderstandings. The contract should specify whether the
seller can sell the horse to another buyer during the trial period and what
will happen at the conclusion of the trial period if (a) the buyer still wants
to buy the horse and (b) if the buyer no longer wants to buy the horse.
Example: Another client of Fiona Fearless, Winston
“Winner” Clark, has hired Fiona to find a dressage prospect for him. Fiona finds a four-year-old Hanoverian that
she likes and the Hanoverian’s owner offers to let Fiona take him home for a
week to try him. Fiona picks him up and
takes him home. She discovers that once
away from home, the colt is way too green for Winston to handle, so she returns
the colt to the seller. Two weeks later,
the seller calls Fiona in a huff, telling her the colt’s back is sore and her
chiropractor says that the colt now needs an expensive series of
treatments. The seller claims that the
back problems were caused by Fiona not properly fitting a saddle to the
colt. Fiona knows she was very careful
about saddle fit, but the seller has a big reputation in the industry, so Fiona
offers to split the chiropractic costs with her and wishes that she had asked
the seller to sign a receipt stating that the colt was in good condition when
she returned him.
Taking
Possession of the Horse
For
a variety of reasons, some horse purchasers buy horses and then do not pick
them up for a period of time, sometimes as much as a couple of months. With the advent of Internet horse sales, this
circumstance is becoming increasingly common.
The sale contract should clearly state when the buyer is responsible for
taking possession of the horse and what will happen if he or she does not take
possession of the horse by the appointed date.
Example: Suzie Sucker’s trainer, Fiona Fearless,
evaluates Ripsnorter for Western Pleasure and really likes him. His club foot doesn’t seem to affect his
soundness at all, and he has a sweet, willing disposition. Suzie calls Big Thang to tell him that she’s
decided to keep Ripsnorter and she apologizes for any ill will between
them. While Suzie is on the phone, Big
tells her about “Son of Snort,” a weanling colt by Ripsnorter’s sire, “Sir
Snort.” Suzie decides to purchase Son of
Snort and wires the funds to Big. A big
snowstorm prevents the hauler from coming to pick up Son of Snort for three
weeks after Suzie has paid for him.
Before Son of Snort even arrives at home, Suzie receives a bill for
board and training from Big Thang to the tune of $750. She is surprised, because Big knew that the
hauler wasn’t able to pick up Son of Snort any sooner. She calls Big to ask him about the bill and
his staff explains that Suzie was responsible for Son of Snort’s expenses as
soon as she paid for the colt. Suzie
pays the board bill, but she vows never to buy another horse from Big.
Risk
of Loss of or Injury to the Horse
In
any circumstances where there may be a delay between the time that the buyer
begins paying for the horse and the time that the buyer takes possession of the
horse, the contract should state who bears the risk that the horse will die or
become injured.
Example: The day before the hauler is scheduled to
pick up Son of Snort, “Snorty” injures himself on
turnout and requires six stitches in his head.
Suzie is surprised to receive a $300 vet bill and when she calls Big’s office, his staff patiently
reiterates that the colt was Suzie’s responsibility as soon as she paid for
him. Really frustrated, Suzie paid the
bill.
Representations
and Warranties
The
sale of horses has historically been a “buyer beware”
business. However, many unscrupulous
sellers have used this custom as a justification for fraud, which is why savvy
buyers will ask for representations from the seller about the condition and
soundness of the horse they are buying.
In contrast, not-so-savvy buyers, especially first-time horse buyers,
may rely too heavily on the seller and expect the seller to guarantee the
horse’s future soundness and/or performance.
If
you are a seller, unless you have a money-back guarantee or other return policy
(see “Return Policy” above), your sale contract should state that you are
selling the horse “as is and without warranties of any kind.” If you do offer any type of guarantee or
return policy, the terms of these policies should be noted in your sale
agreement, with any exceptions clearly indicated.
If
you are a buyer, you should consider the most important representations that
the seller has made to you, and ask the seller to put those representations in
the sale agreement.
Example: Suzie just can’t stop browsing the online
classifieds. She’s a real sucker for a
black and white Paint, and she finds “Painted Snort,” a full brother to
Ripsnorter, for sale in Florida. She
questions the seller extensively, has an independent veterinarian examine
Painted Snort, and even has a close friend who lives in Florida go over to try
the horse for her. Suzie had to retire
her favorite Western Pleasure mare because of navicular, so Suzie is
particularly sensitive to lameness issues.
She has the Florida veterinarian take a full set of X-rays and send them
to her vet in Idaho to examine. Both
vets concur that Painted Snort’s X-rays are clean, and the Florida vet tells
Suzie that the horse passed the flexion tests and otherwise showed no signs of
lameness. Painted Snort has been out
in pasture for six months, and the seller told Suzie that she simply doesn’t
have time to ride him, so she turned him out.
When Suzie asks, the seller reassured her that Painted Snort has never
been lame. When Suzie presents the
seller with a contract stating that the seller “represents and warrants that
the horse has never suffered from lameness or unsoundness,” the seller suddenly
remembers that Painted Snort had a soft tissue injury to his right front leg in
his two-year-old year, and that he’d been off for three months. Suzie consults her veterinarian, who advises
her to ask the seller for the medical records relating to the lameness. Upon examining the medical records, Suzie’s
vet discovers that Painted Snort’s injury is of a type that is likely to recur
and he advises Suzie that Painted Snort may not remain sound.
Contracts for Horse Leases
As
the cost of horse ownership has increased and the amount of spare time
available to most horse owners has decreased, leasing horses has become much
more popular. Leasing can be very
beneficial for owner and lessee (the person leasing the horse). For the owner, leasing helps defray the cost
of horse ownership and ensure that the horse has adequate attention and
exercise. For the lessee, leasing
provides an opportunity to ride and care for a horse without the commitment and
expense of ownership. The horse frequently
benefits from the extra care and attention provided by the lessee.
Leasing
a horse also has its risks. The lessee
may not care for the horse in the way that the owner would like or they may
fail to fulfill their payment obligations.
The owner may have overly restrictive requirements for the lessee and/or
not care for the horse properly. In
addition, there is no generally accepted definition of a lease when it comes to
horses, so the parties often start out with different ideas about what the
lease relationship will be like. A
thorough, well-drafted lease contract can go a long way toward minimizing these
risks.
The
Basic Relationship
There
are several common types of equine lease arrangements. When drafting a lease contract, it is
important to understand exactly what the parties have in mind.
• Type
1 (often called a “full lease”): The lessee takes over full possession of the
horse from the owner, often moving it to the lessee’s property. The lessee typically takes care of all of the
horse’s shoeing, feed, exercise and veterinary needs and pays for all of the
horse’s expenses. The lessee also
generally assumes all risk of injury or loss.
The lessee may or may not pay the owner a lease fee in addition to
paying for the horse’s expenses.
• Type
2 (often called a “partial lease”): The lessee rides the horse one or more days
per week. The lessee may or may not
share responsibility with the owner for the horse’s care. The owner may charge the lessee either a flat
lease fee or a portion of the horse’s expenses.
The lessee may or may not assume some risks of injury to or loss of the
horse. The owner may have several
lessees leasing the same horse.
• Type
3 (often called a “free lease”): This relationship is much more like a loan
than it is a lease. The owner typically
allows the lessee to ride and/or care for the horse one or more days a week at
no charge. The lessee may or may not
assume some risks of injury to or loss of the horse. The owner may or may not require the lessee
to assist in certain tasks, e.g., stall cleaning, in exchange for riding
privileges.
• Type
4 (often called a “breeding lease”): Breeding leases are a variant of Type 1 and
they most frequently apply to mares. The
owner leases the mare to a lessee who wants a foal. The lessee generally takes responsibility for
getting the mare in foal and caring for her before, during and after her
pregnancy. The mare may or may not leave
the owner’s property during the lease term, and the lessee may or may not
assume some risks of injury to or loss of the mare. The lessee typically owns any foal that the
mare produces during the lease term, but it is not uncommon for the ownership
to be conditional. For example, the
lessee might be an Appaloosa breeder who wants a colored foal, so the owner and
lessee may agree that if the foal is solid colored, the mare owner can keep the
foal.
The
Lease Term and Termination
As
outlined above, there are several different types of leasing
relationships. Accordingly, the length
of time of the lease term may vary significantly. The lease contract should specify an end
date, or conditions under which the lease will end. For example, in a breeding lease situation,
the lease may specify that it will end 120 days after the mare produces a foal,
or if the mare fails to become pregnant, within four months after the start of
the lease term.
Termination
is also very important in a lease relationship.
Who has the right to terminate the lease? Under what conditions can the lease be
terminated and what notice must be provided?
The lease contract should spell out these provisions very clearly and
attempt to cover every contingency.
The
Lessee’s Obligations
In
most lease arrangements, the lessee compensates the owner for the use of the
horse. Compensation can take many forms,
however, including fees, services and combinations of fees and services. For example, a lessee might agree to pay the
owner a monthly lease fee and provide exercise and/or turnout for the horse
three times per week. In another
situation, the owner might forgo all fees if the lessee agrees to help work on
a behavioral issue that the horse has.
The lease agreement should spell out exactly what the lessee’s
responsibilities are, including payment due dates, and what happens if the
lessee doesn’t meet his or her obligations.
Clarity is particularly important when the lessee’s obligations include
training and other services, because reasonable people often disagree about
whether the lessee’s services are adding value.
Example: Suzie Sucker has a new two-year-old filly
that she is showing in the futurities, in addition to showing Son of Snort in longe line classes, and as a result, she does not have
enough time to ride Ripsnorter. Fiona
Fearless mentions to Suzie that she has a student, Willy Falloff, a novice
rider who would like to own a show horse but can’t afford to purchase one. Suzie talks to Willy and agrees to lease
Ripsnorter to him for $500/month. Suzie
and Willy enter into a lease agreement on March 15, but Suzie needs to receive
the lease fee on the first of the month so that she can pay board on
Ripsnorter, so she is careful to specify in the contract when the lease payment
is due. Pursuant to the contract, Willy
gives Suzie a prorated payment for the month of March and pays her for a full
month on April 1.
The
standard of horse care is another topic that inspires many lease-related
disputes. The lease agreement must
define what type of care the horse will receive, from whom, and who will be
financially responsible for that care.
Care instructions should include not only the obvious, such as feeding
and routine farrier and vet care, but also more subtle points, such as the tack
permitted to be used on the horse. If
the horse will not be kept at the owner’s facility, the lease should also
specify where the horse will be stabled, and under what circumstances the
lessee can move the horse to another facility.
Example: Because Willy is a novice rider, he is not
familiar with how show horses’ manes should be maintained. In June, Suzie stops by Fiona Fearless’ barn
to check on Ripsnorter and is surprised to see that his mane is scraggly and
unkempt. Willy explains that he didn’t
know he needed to pull Ripsnorter’s mane unless he was going to a show, and he
had not been to a show yet. Suzie is
annoyed, as she likes to keep her horses show-ready year round.
The
Lessee’s Rights
What
will the lessee be permitted to do with the horse
during the lease term? Most leases are
essentially a sharing situation – the owner is sharing his or her horse with
the lessee. Like most sharing
situations, misunderstandings can easily arise about what is fair. To avoid conflicts, the lease agreement
should clearly specify what the lessee is allowed to do with the horse, when
and how often. For example, if the
lessee is only permitted to ride on certain days, agree on the days and put
them in the lease with a provision that outlines the process for changing those
days if necessary. Is the lessee
permitted to trail ride, jump, take the horse off of
the property for horse shows or other events?
The lease agreement should cover these activities and list anything that
the lessee is NOT permitted to do with the horse.
Example: Willy sees a TV show about Big Thang and is
in awe. He discovers that Big is giving a
clinic at a stable that is only 50 miles away, and he excitedly registers
himself and Ripsnorter for the clinic.
Fiona Fearless mentions to Suzie that Willy is taking Ripsnorter to the
clinic and Suzie panics because she doesn’t want Willy trailering Ripsnorter. She tells Willy he can’t take Ripsnorter to
the clinic and then Willy panics, because he has paid a non-refundable deposit
of $300 for the clinic. Suzie eventually
changes her mind and lets Willy take Ripsnorter to the clinic, but she worries
the whole time until Ripsnorter is back safe and sound.
The
Owner’s Obligations
Lease
disputes can also arise when the horse owner does not fulfill the lessee’s
expectations. To avoid
misunderstandings, the lease agreement should detail what the owner’s
obligations are.
Example: Under the lease agreement, Suzie is
responsible for “farrier care” for Ripsnorter.
Suzie has always kept Ripsnorter barefoot. Fiona decides that Willy is ready to go to
his first show and tells him that Ripsnorter will need to be shod before the
show. Willy calls Suzie to tell her
about the shoes and Suzie protests, saying that Willy can show without shoes on
Ripsnorter. Willy wants to give himself
the best chance at the show, so he follows Fiona’s advice, asks the farrier to
put shoes on Ripsnorter, and pays the bill himself. It annoys him, though, because he thinks that
“farrier care” should include the shoes.
The
Owner’s Rights
Many
lessees treat a leased horse like it was their own horse. For the horse and the owner, this is ideal,
because the horse receives the best care that the lessee can provide. However, when the owner wants to use the
horse, it can create conflict with the lessee, especially if the owner suddenly
starts taking an interest in the horse in the middle of the lease period. The lease agreement should specify whether
the owner can rearrange the lessee’s riding days, pick up the horse for a show
or clinic, or otherwise disrupt the lessee’s use of the horse.
Example: Suzie finishes showing her two-year-old in
the futurities and the two-year-old is in desperate need of some time off. However, Suzie really enjoys showing and
would like to show in the state breed association’s big fall show. Ripsnorter is going really well and Suzie
would like to show him in the Amateur Owner division. The fall show lasts two weeks, and Suzie
figures that she can just give Willy a 50% discount on the lease fee for that
month. However, she discovers that Willy
has planned to take Ripsnorter to an open show that weekend to show in
walk/trot classes and has already paid the entry fees. Suzie wishes that she had put a clause in the
lease specifying that she could preempt Willy’s lease rights to take Ripsnorter
to shows.
Contracts for Boarding
The
Boarder’s Obligations
Most
boarding agreements are fairly clear about the boarder’s primary obligation:
paying the boarding stable. However,
even this seemingly simple responsibility can become complicated, and therefore
the boarding agreement should clearly state the exact terms of payment, when
changes in the payment amount can be made, and what happens if the boarder
doesn’t pay.
Example: With his big facility sitting half-empty, Big
Thang decides to take on some boarders to make ends meet. He draws up his own boarding contract,
clearly stating that board in paddocks is $400/month and board in box stalls is
$500/month. Clara Clueless, who lives
nearby, is running out of space at Clueless Arabians due to the unprecedented
success of her stallion advertising campaign for Fire. She signs a boarding contract with Big to
keep 10 of her broodmares in two paddocks at Big’s
place. Two weeks later, Big notices that one of the mares is losing weight and he
has his staff move her to a box stall so that she will have no competition for
her food. Big calls Clara and informs
her, and Clara thanks him for looking after the mare’s interests.
Clara is surprised to receive
an invoice the following month for nine horses in paddocks at $400/month and
one horse in a box stall for $500/month.
She thought that because Big chose to move the mare, and she had
intended for her to be in a paddock, she shouldn’t have to pay the extra
$100. Shortly thereafter, Big revises his boarding agreement to specify that he has
the right to move a horse at any time for any reason and that the owner is
responsible for any resulting increase in board.
When
a boarder does not pay his or her board bill, many states have livestock liens
which allow the boarding stable to retain possession of, and even sell the
horse under certain circumstances.
However, in drafting your boarding contract, it is important to be very familiar
with your particular state’s livestock liens, because your ability to enforce
the lien may depend heavily on what your contract says. Your contract should state step by step
exactly what will happen if the boarder becomes past due.
Boarding
stables typically have rules for safety and convenience, and these rules should
be made a part of the boarding contract.
In addition, all stable requirements about vaccinations and other
essential elements of stable management should be integrated into the boarding
contract. As with the provisions
regarding board payments, the boarding agreement should state exactly what will
happen if the boarder does not perform his or her responsibilities.
Example: Big’s boarding
contract states that the horse owner is responsible for trimming their horses’
feet at least every eight weeks, and that if the owner does not fulfill this
obligation, Big can (but is not required to) take care of it and bill the
owner. Big’s
staff notices that Clara’s mares’ feet are seriously overgrown, at least three
months overdue for a trim. In addition
to the mares’ obvious discomfort, their appearance is bad for business. Big’s staff, after
their calls to Clara go unanswered, arrange for Big’s
farrier to trim the mares. Big uses the
most expensive farrier in town, and two of the mares
are really uncooperative, so Clara gets an enormous bill from Big’s farrier. Clara
nearly has an apoplexy after her lawyer tells her that Big’s
actions were not a breach of contract and that she should pay the bill.
The
Stable’s Obligations
Horses’
needs for food, bedding and other necessities can differ widely, as can the
owners’ perception of what their horses needs are. As a result, boarding facilities may find
that they are under constant demands from owners for more feed, less feed,
different bedding, etc. To minimize
special requests (and provide an opportunity for additional profits from
value-added services), many boarding stables specify what their basic services
are in their contract, and what services are available at an additional
price. For example, a boarding contract
might state that horses in box stalls are fed two flakes of alfalfa/orchard
grass mix hay twice daily and stalls are cleaned four days per week. Services available at an extra charge might
include additional hay; daily stall cleaning; feeding supplements, grain or
medications provided by the owner; blanketing; turnout and longeing. Being clear about what is included vs. an extra
helps align the stable’s and the owner’s expectations.
If you own or manage a boarding
stable, a good boarding contract is essential to the operation of your
business. Here are the most common
boarding stable problems and how your contract can help you prevent and address
those problems.
Non-Paying
Boarders
Every
boarding stable occasionally has a boarder who can’t or won’t pay on time. Your boarding agreement should clearly state
the terms of payment and outline the penalties for not paying on time. Enforcing those penalties for every late
payment will help increase your chances of being paid on time
consistently.
Many
states have livestock lien statutes which grant certain rights to boarding
stables who are owed money by boarders.
Your state’s lien statute may require you to make a filing, include
certain provisions in your boarding contract, and/or retain possession of the
boarder’s horses to perfect your lien, so consult an equine attorney in your
state to make sure that you know your lien laws before you need to use them.
Problem
Boarders
Every stable has them – boarders who
are always causing a problem and just can’t seem to get along with everyone
else. They are bad for business and for
a stable manager’s blood pressure. Your
boarding stable should have clearly written rules that cover safety items as
well as common courtesy, and you should attach a copy of those rules to each
boarder’s boarding contract. As you feel
the need to add to the rules, you can amend the boarding contract to include
the new rules. Having written rules
goes a long way toward preventing disputes – if all of your boarders know
exactly what the rules are, your boarders will often self-police them. In addition, “I didn’t know” is no longer a
good excuse when rules are broken. Your
boarding agreement should include a termination for cause clause that allows
you to evict a boarder upon relatively short notice if he or she violates a
major safety rule or habitually breaks rules.
Remember – it’s your place, and you can set the rules. If you want everyone gone by 10 p.m., make it
a rule. If you are tired of cleaning up
your boarders’ messes, specify in the rules what they must do to pick up after
themselves.
There is another type of boarder who
is a thorn in the side of a boarding stable manager – the boarder who
represents 1% of your income, but creates 90% of your work. They may complain that their stall doesn’t
have enough shavings, or that you don’t feed their horse enough. They expect you to feed their four different
supplements twice a day (“Two scoops in the morning, four scoops in the evening
and would you mind adding a splash of corn oil?”), and they ask you to remove
blankets and turn out “as a favor.”
Every boarding contract should clearly state what services are included
– e.g., how much feed per day, how often stalls are cleaned, whether turnout is
included. Everything else that a
boarding stable is willing to provide should be itemized as an extra service
available at a specified price – e.g., trailer parking, administering
medications and turnouts. Consider how
you are spending your time and resources, and whether your regular boarding
fees should cover everything that you find yourself providing.
Termination
Many
boarding stables require horse owners to give 30 days’ notice before leaving
the facility. However, most boarding
stable contracts are not clear about what happens if the owner does not give 30
days’ notice and/or what notice the stable is required to give the owner to
terminate the agreement. A well-drafted
boarding contract includes a provision that allows the boarding stable to
terminate the contract for any reason, and another that allows the stable to
terminate the agreement for cause (generally with a much shorter required
notice period). Termination for cause
can be very useful in situations where a problem boarder repeatedly violates
safety rules or is otherwise endangering other boarders and their horses.
Example: Fed up with big board and shoeing bills,
Clara decides to bring her mares home, even if it
means the pastures will be a bit crowded at Clueless Arabians. She gives Big notice
on June 2 that she is taking her mares home on June 15. Big’s contract
clearly specifies that 30 days’ advance notice is required. Clara has paid board through the end of June
and thinks she deserves a refund for the unused portion of June. Big refuses, noting that
Clara didn’t give him 30 days’ notice.
Clara creates a scene when she comes to pick up the mares, and only
agrees to leave without a refund when Big’s staff
calls the sheriff. Shortly thereafter,
Big edits his boarding agreement to clarify that when the owner gives less than
30 days’ notice, the owner still owes board through the end of the month and is
not entitled to a refund.
Contracts for Training
Training
contracts are a relatively novel idea in the horse industry, but they can
enhance your training business by establishing an owners’
expectations and clarifying the owners’ obligations.
What
the Trainer Will Do
Many
trainer/owner disputes arise over mismatched expectations about what a trainer
can and will do. Owners may expect a
horse to be performing at a certain level after a certain period of time and
not understand that each horse is an individual and some horses will progress
faster than others. Owners who are
unfamiliar with a particular trainer’s practices may be upset to learn their
horse is not being ridden every day, or that the trainer has an assistant
riding their horse. Communication
between trainer and owner is very important, and some owners may expect to talk
with their trainer several times a week, while the trainer may have time to
talk only once a month.
Savvy
trainers will evaluate a horse before agreeing to take it in for training, and
after evaluating the horse, they talk over a training plan with the owner. If the owner’s goals for the horse are
unrealistic or not in line with the trainer’s expertise, the trainer is better
off being straightforward with the owner and declining the engagement rather
than taking on the horse anyway and having a dissatisfied customer. Putting the training plan down in writing and
setting a regular time with the client to evaluate the horse’s progress can go
a long way toward client satisfaction.
The
fastest way to create owner dissatisfaction is to send them a bill that is
larger than they expected, especially if they have not been recently updated on
their horse’s progress. A training contract
should include an itemized schedule of all fees that the trainer may charge,
including show fees. The trainer should
ensure that his or her staff prepares itemized invoices that match the schedule
in the agreement and that the invoices are timed to go out after the trainer’s
regular update with the client.
What
the Owner Will Do
Many trainers find that their training
programs are more successful when they include the owners in the training
process. For example, a trainer may want
to work with a new horse alone for 30 days and then after that, have the owner
take one lesson per week with the trainer to ensure that the owner understands
the horse’s training and can continue it at home. In addition to all payment terms, the
training agreement should clearly state what the trainer expects the owner’s
role to be.
The Last Word on Contracts
Contracts
are only useful if all of the right parties sign them AND you keep a copy of
the signed version where you will be able to find it later!