Loan Contracts -- what to add?

legyield

legyield

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I know this question may well have been asked to death but could do with a bit of help here. I have decided to take this lad http://www.horsemart.co.uk/advert/5_yrs_16_2_hh_dark_bay_thoroughbred_yorkshire/83432 on full loan.

I have known the owner for a while, we used to go to school together, but i'm aware that makes no difference when it comes to the ifs and buts of horses and loaning. The owner hasn't got a loan contract prepared but i would most certainly want one signed. I've been looking at the generic one from the horse trust website http://www.horsetrust.org.uk/pdfs/beforeyoubuy/loanagreement.pdf and it seems ok as a starting point.

If i'm honest, i want everything accounted for. One of the main things i'm bothered about is that as he's so young, as i do a bit of everything with him, he'll no doubt increase in value. I do think he's overpriced now and would value him at about £2000. Can i somehow put into the contract that if he was put up for sale i would get first refusal on an agreed price of £2000?

What else would i want to cover which isn't necessarily in the basic contract?
 
I used the BHS one too. Added in all the dos and don'ts for my horse and what she was responsible for money wise.

Not sure about you re-valuing him though. I think that is up to the owner.
 
You can put in a clause about loan with a view to possible sale at an agreed price. It may not hold up in a court as it would technically be in restraint of trade - but it would be a powerful persuader.

You also need to think about clauses covering who has authority to tell the vet to PTS in an emergency and who in long term illness. Who is responsible for insurance and 3rd party liability. Notice periods. Anything specific you or she want in terms of care - is he to be shod a certain way, kept in at night, rugged, not rugged, clipped etc. Vaccinations. What happens to any tack or kit you have bought if she cancels the loan - does it go back to her with him or stay with you? What about any kit which comes with him now? Does it become yours or remain hers - in which case you would have to replace it if it becuase worn etc.

It might sound obsessive but good contracts help keep freindships.

(Edited because spotted spelling mistake - shouldn't push the buttons so quick!)
 
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