When purchasing or selling a horse you always want to document the transfer of equine from the seller to the buyer. We suggest securing a valid bill of sale to properly document the sale including the sales price, buyer and seller warranties and details regarding the health condition of the equine.
Why Do You Need a Bill of Sale?
There is one general reason why you want to get a Bill of Sale when purchasing or selling a horse:
1. Horses can be very expensive. Whether you giving or receiving cash for an item, you want proof of the transaction in the event someone makes a claim against ownership (if you are the buyer) or if someone is injured on the horse (if you are the seller). It is a simple form of insurance.
In short, a properly executed Bill of Sale will protect you from future liabilities.
What Does a Bill of Sale Need to be Valid?
A bill of sale acts as a contract between the buyer and seller of a horse. Each state has different rules for what they consider a valid bill of sale, but a contract itself must abide by the following rules:
Offer: The agreement to exchange the vehicle for an amount of money. May also include conditions of the sale for the buyer and the seller.
Consideration: The amount of money being exchanged. Usually in a numeric and written form.
Acceptance: Signatures of both parties on the bill of sale.
Competent Parties and Legal Intent: Both parties entering the contract must be competant (age, mental capacity, and not impaired or forced). The contract is also valid only if it is lawful. A contract to complete an illegal act is not binding.