BB123
Full Member
Posts: 210
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Post by BB123 on Nov 27, 2017 20:21:04 GMT
Hi all I am looking at loaning my mare out, the lady and her daughter would like to take her on loan, as a mother daughter share, the daughter is under 18, how do I cover this in the contract, due to liability risks etc
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sarahp
Happy to help
Posts: 9,510
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Post by sarahp on Nov 27, 2017 22:03:43 GMT
Must admit that although I've used the form as a basis for a loan contract on several occasions, that point had never occurred to me. Perhaps talk to your insurance company about it? I have always required the loanee to do the insurance.
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Post by gillwales on Nov 28, 2017 6:33:40 GMT
the liability would have to be on the parent. The loanee should cover the cost of insurance which should be in your name.
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Post by sjw87 on Nov 28, 2017 12:59:00 GMT
As others have said, the liability would be with the parent but I would definitely add a clause in to that effect.
The only other things I'd recommend to consider and write into the contract if applicable are:
- Who else is allowed to ride the horse and what tack is to be used.
- Clearly stipulating end of loan agreements eg. Who pays transport and how much notice is to be given by either party, including your right to request immediate termination if they don't follow the agreement.
- Even if you don't ever intend to sell, adding an agreed purchase price in to the contract is beneficial if circumstances ever change. Far easier to agree a price now than to have heartache on either side if you can't agree a price further down the line.
- Insurance wise, it's better in my experience for the owner to hold the policy and the loaners to pay the owner the premium. This is for two reasons; firstly, if the horse becomes injured and is returned to you as the owner, you have the full ability to claim vets fees for the injury. If they have their own policy and return the horse, you are uninsured. Secondly, if the worst happens and the horse is pts, the payout of it's value goes to you rather than the loaners. Ensure that they have a copy of the insurance t&c's and sign to say they will abide by them and will be liable for any costs incurred as a result of breaching the small print (eg. Some policies stipulate hi-viz to be worn on the roads, for a qualified dentist to be used etc etc).
- Ensure that if on livery, the yard owner is given a copy of the agreement and it states that any livery fees/associated costs are the responsibility of the loaner. I have known situations where loaners have accrued debt and the yard owners have refused to let the owner remove the horse without settling the debt.
Loaning can and does work well but don't be afraid to write even minute details into the contract. Far better than to have a dispute further down the line.
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