Horse Loan Agreements

5th January 2015

Loaning out your horse or having a horse on a loan may seem like the perfect solution when funds are tight, however, in reality loaning out a horse has many potential pitfalls and loans of horses are often the subject of bitter legal disputes. It is therefore important to have a bespoke loan agreement in place before the loan commences. These horse loan agreements define who is responsible for what and helps to protect both parties.

Loaning a horse carries with it risks to both parties. The owner of the horse entrusts their animal to the care of someone else who could be a complete stranger to them. On the other side, the borrower takes on the huge responsibility of the care and wellbeing of another person’s horse.

Without a detailed and bespoke loan agreement being put in place before the loan commences then a dispute about a loan can arise on many issues such as insurance for the horse, how the day to day care of the horse should be carried out, which farrier or veterinary surgeon should be called to the horse, and what it should be fed, to name but a few areas of potential dispute. There are different terms that may need to be considered when entering into a contract for a loan with a view to buy or even a horse share agreement.

As well as dealing with the matter by drawing up a specific loan agreement there are a number of practical steps that can be taken to minimise the potential for dispute at a later stage. For instance, I always advise client’s looking to loan their horse out to take a detailed set of photographs of the horse beforehand and to take a video of the horse in work where possible. References for potential borrowers should also be required to ensure the credentials of where your horse is going to.