Top tips for a successful equine loan/ lease agreement

What’s the difference between a lease agreement and a loan agreement?

Generally speaking, a loan agreement is a contract between a borrower and an owner, where no money changes hands. A lease agreement is a contract between owner and hirer, where a fee is paid in return for use of a horse.

What do I need to include in an agreement?

• List any tack or equipment included.
• The start date.
• When and/or in what circumstances the loan/ lease can be terminated. This should include the ability to terminate the agreement if either party is in breach of the agreement or if it is in the interest of the health or welfare of the horse to do so.
• If a lease fee is to be charged, the amount of that fee, when it is to be paid and whether the hirer is to be entitled to any refund in respect of any fee paid up front if the lease is terminated early.
• Any restrictions on where the horse must be kept.
• Any requirements regarding the general care of the horse – must it be stabled at night, turned out on its own etc?
• Any specific requirements regarding the frequency of when the horse must be shod, wormed, have its teeth checked etc and any restrictions on who must do this.
• You should cover who is responsible for vet’s fees. If the horse must be kept insured for vet fees, depending on the insurer, the owner may have to arrange the insurance and reclaim the premium and claim for any outlay from the borrower/ hirer.
• Any restrictions on the use of the horse.
• Any assurances regarding the horse’s ability or health. If you are the borrower/ hirer, you may wish to include statements regarding the ability or health of the horse so that if these later appear to be untrue then the loan may be terminated.
• If you are the owner, specify in the agreement whether you would like to have access to see the horse at reasonable times during the agreement.
• If you are the owner, you need to cover the question of your ability to sell the horse to a third party despite the agreement.

Our team, being owners and riders ourselves, are ideally placed to help you with such agreements.