What is an Equine Lease Agreement?
An Equine Lease Agreement is a legally binding contract between a horse owner (lessor) and a person leasing a horse (lessee). Lease "agreements" are a common way to deal with the ownership of property and horses are no different. The agreement can be written or oral but to be on the safe side, it is recommended that you document everything in writing to prevent later disputes.
Lease agreements typically set forth the terms and conditions of the lease along with the rights and responsibilities of each party. This includes the period the horse can be leased, expenses involved with the horse, how the horse will be used, the ownership of tack purchased and whether the lessee has the right to compete the horse. As with any other agreement, the terms should be negotiated between the owner and person leasing the horse prior to entering into the agreement. If an agreement cannot be reached, the parties may wish to seek the help of a professional mediator or even an attorney to help them reach an agreement .
There are many types of Equine Lease Agreements in the horse industry today including:
Public Lease Agreements – the most common lease agreement, most often between the owner of the horse and a person leasing a horse. Private Lease Agreements – a closed lease where the owner will not rent the horse to any other individual. Work Agreements – the horse is leased to an individual who will use the horse for its services (training, breeding, showing, etc.) and the owner of the horse is paid based on the services rendered; the owner also owns the horse. Share Agreements – this equine lease agreement is where the owner would sell a portion of the horse to the lessee and the owner and lessee would jointly own the horse. All expenses would be shared – medical (soundness exams, injuries, etc.) and general expenses (board, feed, farrier, etc.).
When documenting an Equine Lease Agreement, it is important that all parties involved understand their rights and obligations under the lease. When horses are involved, there are risks of injury, loss of use, destruction, death and the risk of litigation. Contracts and an equine lease agreement are designed to minimize these risks.
Essential Components of an Equine Lease Agreement Template
An equine lease agreement template should cover several important components, regardless of the specific use of the horse. While the terms of a practice or leasing arrangement can vary widely, some key elements are critical to any contract: Identifying Participants: The first section of any lease agreement should identify all participants in the transaction. This may include the name and address of the horse owner (called the "lessee" in some arrangements) and the name and address of any others that should be copied on any correspondence. Lease Terms: The next section of an equine lease agreement template should address the terms of the lease itself. This may include length of the lease, the ability to transfer rights to another party, and any transfer requirements before parties can sell, transfer, or otherwise convey ownership of the horse to other parties. A well-crafted agreement will also specify the rights of the lessee with respect to the horse’s use. Financial Responsibilities: A basic equine lease agreement template should also address financial responsibilities. This may include board and care costs, veterinary fees, training costs, or the extent to which the lessee will contribute to each of these factors. As with any legal document, a clearly written agreement that addresses these issues is the best way to resolve any disputes before they arise. Termination of the Lease: Finally, any good lease agreement will clearly define the circumstances under which the contract can be terminated. This may include the owner’s inability to complete their obligations under the agreement or simply the fact that the time period for the lease has ended. The termination section may also require the lessee to provide a period of notice before terminating the agreement.
How to Create Your Own Equine Lease Agreement
The beauty of an equine lease agreement template is the way it can be customized for specific circumstances. It also shows how relevant an attorney can be to the process. For example, if a broker says a lease is "standard" (whatever that means), they may not be familiar with many finer points that should be covered in a more thorough lessee/owner/lessor agreement.
From the perspective of the owner, if you are leasing your horse, you should include provisions in your lease that contemplate who will pay for routine veterinary care, whether the lessor can make decisions about routine care and whether you as the owner still have the right to take the horse for vet care.
From the perspective of the lessee, you would want to make sure you have provisions that put the ball in your court or make you 100% certain about when a horse can be treated, with whom and what.
Both sides to an agreement can benefit from insurance provisions: where premiums are paid, how much coverage is included, who makes a claim in the event of an accident, etc.
Don’t be intimidated by "standard" language that experienced riders have been using for years. If something jumps out as possibly being a problem, address it. If you haven’t seen something before that may become an issue, address it. If something is unclear to you, clarify it.
A binding agreement to the terms of the lease is not something you want to take too lightly. And a generic equine lease agreement template is anything but a guarantee of the viability of an agreement. Just be sure that you have the relevant topics covered, make sure the process is fair, your rights are protected as much as possible and enjoy your lease period.
Equine Lease Agreement Legal Considerations
As you venture into the world of equine leasing, it is essential to recognize that this is a transaction teeming with potential liability. State laws vary widely concerning equine liability. For instance, some states have no negligence statutes for equine activities, while other states have adopted abbreviated posts on the concept of shared responsibility. Still others, like New York, have enacted combined contributory negligence statutes. Failure to comply with applicable statutory requirements may be disastrous in the event of a lawsuit arising from a leasing transaction or otherwise from equine related activities. The various disclaimers discussed in other sections of this blog post will provide only limited protection as a defensive matter in event of litigation. They are not substitute for legal advice and counsel prior to entering into an equine lease agreement. So on the day that the owner of your favorite dollar stallion or strikingly handsome mare decides that another horse is just what she needs in her life, get out of the stall, put on your hard hat, cranium protector, helmet, or trusted riding hat; assemble your band of legal foot soldiers (consultants and advisors) and have them review your proposed wording for the document you would like to sign.
Advantages of Using a Template
Equine lease agreement templates are valuable tools that present many advantages for all parties involved in the lease. The benefits of using a template can include: Time savings. Templates provide a time-saving shortcut to creating a lease by providing relevant sections written in clear terms and by removing the need for extensive legal research. By eliminating these steps in the drafting of a lease agreement, parties can finalize the contract quicker and at a lower cost. Legal protection. It is possible to buy generic templates from third-party sources, such as online platforms. However , these generic agreements do not always use the most up-to-date legal terminology or contain clauses that are specific to equine leases. A template created by a licensed attorney will be tailored to the laws that govern leases in your area, protecting you from potential legal landmines. Ease of customization. Once you have purchased a template, you can easily customize it to your needs using a word processing program. For example, if you only want to lease a horse for one year instead of five, you can simply click into the document to change it. The template can be easily altered multiple times, and it will still maintain its original formatting.
Equine Lease Agreement Mistakes to Avoid
It is the detail in the presentation of the Equine Lease Agreement that will ensure that the final product is effective for the parties. One of the most common errors made when using equine lease agreement templates is failing to choose the correct template. There are several different options available that are suitable for different situations. Failing to use the correct form is a recipe for failure, as the template may not provide the necessary options required to be addressed in the document itself.
Another common mistake, which can easily be avoided, is the use of templates that leave out important details. Read each clause to ensure that it works for your horse leasing situation. The lease agreement should represent the written record of what was verbally agreed to. If there is a disagreement over any of the clauses signed, or if there is any future dispute, the completed agreement is the only documentation that can be used to argue a position from.
The final mistake to note is not having the agreement signed and initialed by both parties. An unsigned agreement does not hold much weight in the eyes of the law. Each page should be initialed, to prevent any tampering with any particular page after the agreement has been completed. When the buck stops here, a finished document can only be executed when all of the boxes have been checked and the documents have been thoroughly reviewed before signing.
Equine Lease Agreement Template Resources
Reliable resources for equine lease agreement templates include online legal assistance websites, state and national horse industry organizations, and equine law practitioners. Legal assistance websites are another source for lease agreements. One triple A-rated website (Fermat Legal Services) provides templates for various types of equine lease agreements. LawDepot.com is also a good source for legal service forms. Another source for lease agreements is the equine industry (associations focused on specific equine activities such as reining, roping, barrel racing, dressage, endurance riding, etc.) . For instance, the Arabian Horse Association has put together a template for use by its members. The National Reined Cow Horse Association has a resource page for its members, including a link to a sample lease agreement. Check with the group or association that governs the type of activity you will be participating in, to see if they have developed a resource site. A final source is an equine bankruptcy lawyer. An equine lawyer is well-versed in unique equine issues, such as partnerships, breeding rights, and competition rules. The American Academy of Equine Attorneys website provides a list of equine lawyers, searchable by geographic area.