Are Loan contracts worth the paper they are written on ?

[Penny Less]

As title !

 

[ihatework]

Are they worth it - under a pressure test in a bad situation and if you are talking legal action, then probably not.

But as a clear guide to set out expectations from both parties then most definitely.

Things can and still go wrong, but you reduce the risk and mis-communication by having one.

 

[MiJodsR2BlinkinTite]

Unless you go to a solicitor and have a loan agreement drawn up formally and where both parties have signatures witnessed etc etc, then nope not worth the paper they're written on (and even if you DID go to the expense of solicitors, having something written down and having something which is actually enforceable by law, are two totally different things).

However, IME it is always better to have something written down; and the ONE thing that IS important in any loan agreement is the "euthanasia clause" where you choose a form of words that says something like "the owner authorises an attending veterinary surgeon to put the horse to sleep immediately by humane means if he/she deems it essential to prevent further suffering, without owner being present". Awful to have to think of it, but essential.

 

[bonny]

Unless you go to a solicitor and have a loan agreement drawn up formally and where both parties have signatures witnessed etc etc, then nope not worth the paper they're written on (and even if you DID go to the expense of solicitors, having something written down and having something which is actually enforceable by law, are two totally different things).

However, IME it is always better to have something written down; and the ONE thing that IS important in any loan agreement is the "euthanasia clause" where you choose a form of words that says something like "the owner authorises an attending veterinary surgeon to put the horse to sleep immediately by humane means if he/she deems it essential to prevent further suffering, without owner being present". Awful to have to think of it, but essential.

As far as I know that would happen anyway, in the event of say a broken leg, the owner would not have to give permission and the vet would act immediately

 

[honetpot]

I loan out ponies, some of them in their time have been worth a lot of money and it surprising when you put a contract in front of some people how you can not see them for dust.
You can not judge a book by its cover but someone who is not prepared to sign one,witnessed helps sort out the ones who who just want a free ride. I also check their details.

 

[Pearlsasinger]

A contract would at least go to show that on that particular date, the owner was indeed the owner and the loaner acknowledged that, should the horse 'go missing'.

 

[ycbm]

Unless you go to a solicitor and have a loan agreement drawn up formally and where both parties have signatures witnessed etc etc, then nope not worth the paper they're written on (and even if you DID go to the expense of solicitors, having something written down and having something which is actually enforceable by law, are two totally different things).

You do not need a solicitor to produce a legally binding contract with witnessed signatures.

 

[joosie]

But as a clear guide to set out expectations from both parties then most definitely.
Things can and still go wrong, but you reduce the risk and mis-communication by having one.

This is why I did contracts for my two when they went out on loan. Just so that all parties concerned knew where they stood and we had it all on paper in case someone forgot what was and wasn't their responsibility etc.

 

[Goldenstar]

Any form of written agreement is evidence in a dispute for instance in the small claims court .

 

[poiuytrewq]

I think they should be. Surely if you’ve signed something it can be used against (or otherwise) you in court?

 

[fredflop]

THey are worth the paper they are written on. Pm me if you want advice on what clauses to put in

 

[splashgirl45]

As far as I know that would happen anyway, in the event of say a broken leg, the owner would not have to give permission and the vet would act immediately

that may be the case but it is good if the loaner has that in writing so there is no query afterwards .. some owners may want to try and save their horse at all costs and sometimes broken legs can be mended, i would have hated to be in that position if the owner couldnt be contacted and i didnt know what their views would be...

 

[Tiddlypom]

Just so that all parties concerned knew where they stood and we had it all on paper in case someone forgot what was and wasn't their responsibility etc.

This.

I foolishly didn't take my own advice when my own horse went out on loan. When I later mooted a formal loan agreement based on the usual BHS template guidelines, my request fell on deaf ears, but the horse was already back with me by then.

 

[swilliam]

We put a pony out on loan, with a contract. Didn't realise that the loaner's husband gave her a horse allowance that she was not allowed to exceed, so when the pony needed a vet visit (for an injury caused by their carelessness) I got a phone call saying that they were bringing her back that morning. The contract said two month's notice for her return, unless I was in a position to take her sooner. Fortunately, I did have room for her, as they just dropped her off without giving me a time.The woman was embarrassed, and I was furious - about the injury more than anything else - I'd have brought her back as soon as I knew anyway. I wrote a letter to the husband, saying I expected to be paid livery for the notice period; he said he would consult his solicitor;I said fine, do that - and I got a cheque! He must have thought the contract was enforceable. I did feel a bit guilty about the woman though - I bet she got some stick from him.

 

[blitznbobs]

Of course they are worth the paper they are printed on, they are a contract like any other - if you loaned a car would you think that contact couldn’t be acted legally upon? I would make sure you put in the terms of what happens if it all goes wrong eg if the horse is returned early what the penalty would be and what the owners powers are if the horse is being mistreated and of course what constitutes mistreatment...

 

[Muddywellies]

The required elements for a contract to be legally binding are very rarely in place when a horse is loaned. Usually it it simply a written agreement that is drawn up.

 

[blitznbobs]

The required elements for a contract to be legally binding are very rarely in place when a horse is loaned. Usually it it simply a written agreement that is drawn up.

Oh I think you could strongly argue that there was offer acceptance and consideration in a loan agreement.

 

[ycbm]

The required elements for a contract to be legally binding are very rarely in place when a horse is loaned. Usually it it simply a written agreement that is drawn up.

ANY agreement, verbal or written, is legally binding. The problem if it's not written and signed is proving that it ever took place.

 

[LadyGascoyne]

ANY agreement, verbal or written, is legally binding. The problem if it's not written and signed is proving that it ever took place.

Agree- it is evidence of an agreement.

It may be that generally the terms in these kinds of agreements are such that it would be difficult to enforce performance or clearly demonstrate breach but, in terms of evidencing the undertakings and agreement of the parties, it is absolutely worth the paper it’s written on.