Leasing a horse can be a win-win situation for both the horse owner (Lessor) and the person who leases the horse (Lessee). But make sure you have a solid written agreement before entering into an equine lease. Here are some items to consider:
The Basics
A lease should contain the name and address of the Lessor, Lessee, identifying information on the horse (i.e. microchip, registration, color/markings, age, sex).
Term and Price
Of course you should include the start date and end date, along with the price and payment terms if any.
Equine Leases Can Work if Drafted Properly with Key Provisions
There should be a clause regarding early termination in the event the horse is injured or becomes unrideable. If this clause is triggered the lease should state whether there is a refund, who pays return shipping, and any restrictions on when the horse may travel.
Care, Maintenance, and Training
If the horse has any medical or nutritional requirements, they should be stated in detail.
The lease should detail who is responsible for shoeing and veterinary care. There should be a clause regarding elective veterinary or wellness care and a clause about veterinary emergencies.
Most leases also require the horse to be under the care and training of a certain trainer and at a certain location.
There should also be a clause stating who can ride the horse, the height and frequency it can be jumped, and number of shows it can compete in.
Insurance
It is advisable that the Lessee pay a portion of the equine insurance policy and that there be a clause stating the necessity of notice for insurance purposes. Also consider who will be named a beneficiary under the policy.
Disclaimer of Warranties/Hold Harmless
It is advisable for Lessors to include a disclaimer of warranties and a limitation of liabilities section. Depending on the state’s equine liability statute, you may have to include exact language quoting the statute.
Venue/Choice of Law
This is a boilerplate section which is often overlooked, but it shouldn’t be. This, quite often, ends up being very important if there is a problem down the road and you have to take legal action.
Attorney’s Assistance
Equine Leases have many elements in common, but should be drafted to suit specific circumstances. It is always advisable to consult with an attorney rather than use a document found online or borrowed from a friend. It will save you money in the long run.
This article is provided as an information service only and is not meant as legal advice. Readers are cautioned not to act on the information provided without seeking specific legal advice with respect to their unique circumstances and the applicable law.