Equine Law – Consumer Protection When Buying A Horse

When people enter into a contract for the purchase of a horse, but the animal which they are delivered is substantially different from what was expected or agreed, they are often confused about what their legal rights are, and what can be done to address the situation. However, this area of law need not be unduly confusing.

At its most basic, the purchase of a horse is a contract for the sale of goods, and disputes about the quality of the horse and whether the deal was fair should be decided with reference to general principles of contract and sale of goods law

Contractual warranties and conditions
Under the Sale of Goods Act 1979, the law implies into every consumer contract a condition that the goods sold are of adequate quality and fit for purpose, and that they match their description. These terms are implied into consumer contracts of the sale of horses, and can relate to all aspects of the horse, including its age, its lineage and its state of health.

It should be remembered that the Sale of Goods Act only applies to contracts of sale where the purchaser is a consumer and the seller is acting in the course of a trade or business. For example, a contract between two private individuals for the transfer of horse form one to the other is not covered by this legislation, as the seller is unlikely to be acting in the course of business. Likewise, someone who buys a horse for racing or in the course of their business is not a consumer.

Even where the sale of goods act does not apply, there may well be a warranty or condition incorporated into the contract of sale. This need not be in the written terms and conditions. For example, a description of the horse on a delivery note or invoice could be taken as a contractual term.

Misrepresentation
Unlike many other types of consumer purchases, buying a horse is a transaction in which there is likely to be a substantial imbalance in the degree and expertise and knowledge of the respective parties. Very often the consumer makes a decision to purchase based on information provided by the seller

The Misrepresentation Act 1967 that wherever a consumer is induced into a contract by representations which are made by a seller, and those representations turn out to be incorrect then the consumer has a claim against the seller for misrepresentation. This is the case even where the seller believed the representation to be true.

In cases of misrepresentation, the consumer usually has a choice of two remedies, although in certain cases he may be limited to one or the other.

Damages – the consumer can claim compensation for his loss. For example, if he was sold a horse which he was told was one year old when in fact it was five years old he could claim for the difference between the price which he paid and the value of the horse which he received.
Rescission of the contract. – this means that both parties are placed in the position which they would have been in if they had never entered into the contract. This means that the horse will be returned to the seller and the consumer will get his money back in full.