Loan WVTB contract help needed

[FestiveFuzz]

Hi all,

I'm due to take my new horse on loan with view to buy at the end of the month and we are now in the process of putting the contract together.

As the horse is slightly over my budget we've agreed for me to pay half of the money after a 6 month trial and the other half after a further 6 months. Until I have paid for him in full his ownership will lie solely with his current owner.

They have asked for a clause in the contract to state that once I've paid the first installment if for any reason I changed my mind I would forfeit the money already paid. This seems fair as far as I can see as if after 6 months the horse didn't suit (which I highly doubt would be the case!) I would obviously be giving him back rather than paying the first installment.

I've not been in this situation before so am unsure of the correct terminology that needs to be in the contract, and how to ensure I'm protected once the first installment has been made - i.e. they don't then change their mind and take the horse and my money.

Can anyone advise?

 

[Meowy Catkin]

I've not been in this situation, but from several threads on here it seems to be a bit of a dodgy area. Therefore it would be wise to go to a Solicitor and get the contract properly written up (I assume that a loan to buy the horse outright is not an option) to protect both yourself and the seller.

 

[JillA]

I've got a standard LWVTB contract I can let you have, you will have to add (and agree with them) the clause about the first payment though. I'll pm you my email address and I'll mail it to you - basic will need amending, it contains not only standard loan agreements but the price agreed at the outset.

 

[Polos Mum]

Unless it is a very expensive horse I would have thought the cost of getting a solicitor to OK the contract would be more than interest on a loan for six months - and much safer for you as even with a solicitor OK'd contract you'd still need to take them to court to enforce it should they decide to keep your money and their horse after six months, which would be very expensive.

Why did you want a six month trial? Why not 2/3 weeks then pay in full and there is no risk for you or the seller? Borrow the extra month from friends/ family etc..