A well drafted loan agreement should avoid uncertainty and disputes. The journey through the Court process can be stressful and expensive, but in some cases, may be the only option for a party wishing to see redress if a dispute arises about a loan. Parties should think carefully about what they want to agree in writing, before the horse is loaned.
Below we provide a few examples of what you may wish to consider agreeing, before you enter into a loan agreement.
- What is the length of the loan?
- How can it be brought to an end?
- What notice period should be given?
- Do you want to have a probationary period?
- Who will bear the cost of transporting the horse at the end of the loan?
- What costs will the party taking the horse on loan meet?
- Must the horse be insured? By who? Ensure that the policy is not breached by putting the horse on loan.
- Who has the authority to decide about the horse’s veterinary treatment?
- If the horse becomes suddenly injured or ill, does the person loaning the horse have authority to determine its care? Who will pay for its care?
- Is the person loaning the horse permitted to breed from it? If the horse has a foal, will it belong to the person loaning the horse?
These points are provided by way of example only and do not provide a comprehensive list of issues which may arise throughout a loan.
Contact us today on 0333 3398028 for a no obligation discussion with one of our equine solicitors about a loan contract.
