If you are buying or selling a horse, and especially if there is a trial period, you should be aware of existing Canadian laws that could put you at risk. Buying or selling a horse is a big financial commitment. A written contract will go a long way to ensure that the terms of sale are understood by all and by the courts if this happens. The law also provides for an unpaid seller, who is in possession of the horse, with a right to pledge from the seller. The unpaid seller is allowed to retain possession of the horse until the full payment of the purchase price. This is a version of our horse sales contract that is designed for sellers and not for buyers. When buying a horse or pony, the buyer takes the most risk to know if the horse is healthy. Therefore, a sales contract usually returns the risk to the seller. This version is slightly different in that it protects the buyer a little less and contains provisions that favour the seller and not the buyer. If you are the seller, you are more likely to present your own terms than to accept those of the buyer.
Deferred payments: Be warned that if a contract for the sale of a horse consists of an oral agreement and a handshake and not a written contract, it may not be valid without payment. If the horse is not immediately delivered in the buyer`s possession, the seller must receive at least one down payment from the buyer, otherwise the seller will not be able to enforce the contract against the buyer if the buyer refuses to conclude the purchase. It could be very frustrating if the seller refuses another potential buyer in favour of that dead buyer. If you don`t like the risk allocation or other terms of the Sales Act, you can avoid them by writing your own terms of sale in a written sales contract. For example, if you allow a buyer to perform a one-month trial period with the horse, you agree in a written contract that the risk of injury or death of the horse during that one-month period rests with the buyer. This is in direct contradiction to the rule in the law, but it is perfectly acceptable as long as you set the conditions in writing. You can also require the buyer to insures the horse during this trial period. When a horse is delivered to a potential buyer for a trial period, the law provides that the horse`s property will not be transferred to the buyer until the buyer has given consent or acceptance to the seller or the trial period has expired without the buyer declaring the refusal. As a result, the risk remains in the horse until the buyer`s acceptance date or the expiry of the trial period at the seller.”