Reasonable request on a lease agreement?

[SimplyIdle]

I recently found someone to free lease my mare and I had a sample free lease sent over from a friend which I didn't do much modifying too other than changing the dates and names.

One of the clauses on it states, "The estimated value/purchase price of the said animal is $X. The leasee agrees to compensate the leasor in this amount, if for any reason said animal must be put down. In the above situation proper Veterinary care must be utilized and the leasor must be notified immediately."

Is this is a reasonable request? I have seen this before and would assume that anyone wanting to avoid this risk would take out basic mortality insurance on the horse to be safe.

I'm not trying to screw anyone over, but I do want to cover my own bases considering that I am already concerned about sending my mare away for a year after she has been with me for 10 years.

[tbeventer]

I have a book written by a rider who is an equine attorney. His lease agreement has the same clause, but this can also be dealt with by having the horse insured by the party leasing the horse.

It doesn't just cover one party, but both parties that are involved. If the horse is young enough and without any issues, I'd definatley consider insurance. It's much cheaper than having to shell out $X.

I've always leased a horse with that same clause and every time someone has leased a horse from me, it is also intact.

[JAMMA]

Slightly off topic - tbeventer: Could you pass on the name of the book, especially if you find it helpful? Equine Law is one area of my horsey library that is lacking. It would be nice to have a general reference.

[riderboy]

I think as part of the lease I would require mortality insurance. That would just eliminate this as a future problem. The issue I faced which I thought was reasonable was one of horse/rider injury. That is, I wanted a clause that said the owners would not hold me liable for some career ending injury to their horse (barring blatant abuse) if I did not hold them liable for some career ending injury to me! Something to think about. I was still responsible for vet bills from injury up to some pre specified amout. A serious injury can be very expensive to treat and that should probably be dealt with in the lease as well. Good luck!

[flypony74]

My lease agreement requires mortality insurance on the horse, with me listed as the beneficiary, and highly recommends major medical as well. I would not lease a horse out without the insurance.

[Kementari]

I would include such a clause if the horse was insurable. :yes: Currently I'm leasing out my 22 y/o, and in that case I think it's hardly fair to expect a lessee to pay out for an older (though, knock on wood, healthy!) horse when they cannot obtain insurance (and when, quite frankly, I have no intention to buy a new horse when he does pass on - I already own his "replacement").

[deltawave]

I wouldn't expect someone leasing my horse to pay me for the horse if the horse had an accident and had to be put down. That is a burden that a horse OWNER bears. I do think it's reasonable to require someone who leases a horse to pay the mortality insurance premium, however, or at least part of it.

[cevent]

I wouldn't expect someone leasing my horse to pay me for the horse if the horse had an accident and had to be put down. That is a burden that a horse OWNER bears. I do think it's reasonable to require someone who leases a horse to pay the mortality insurance premium, however, or at least part of it.

I agree with Deltawave. I've free leased 2 horses in the past and neither contract had that clause in it. One horse was only for the summer, roughly 4 months and I had to take out insurance on him. He was 5 at the time and his owner hadn't insured him yet. When he was returned, his owner took over the insurance payments. The other horse I free leased for 2 years. He was older and had insurance. The owner didn't have me pay for the insurance while he was with me, but the contract stated if he was injured or had any medical problems that wasn't from a preexisting condition I would pay for it.

[bornfreenowexpensive]

I think there is an issue as to whether the horse is still under the control of the owner or not. If you are free leasing the horse while it is still boarded with the owner, then that is one thing. But often, the leasee has control over the horse and takes it to another farm (or another state). In those cases, this isn't an unreasonable request at all and one I would expect.

[SimplyIdle]

To clarify a few points:

The mare is completely insurable and still in show condition. She is 14y/o, but she has no pre-existing health problems or conditions to take care of (other than crummy TB feet =))

She will be moving off property and approximately 2.5hrs from where she lives now. It is a full free lease and she won't be in my care, much less on my property, anymore.

[annikak]

I have 2 out on lease right now- and they MUST have insurance and I highly suggest major medical. The rub comes with injury, almost more then anything else.

I know that I would do whatever I could for whatever horse in my physical care, if I own it or not. And if someone is taking care of my guy, I would hope they would do the same. But, since he is worth more then they might want to pay for a dead horse if the unspeakable happens, I think insurance is a wise choice for all. All my guys are at great peoples places (and hearts) and I want to be friends with them forever-this just takes the really sticky part out.

My issue is this- IF the horse gets hurt, and requires long term care *not that I know ANYTHING about that!* and the lease is up, it's also sticky, isn't it?

I also use the agreed upon price as the purchase price if they choose to ask to buy them- and they have first rights of refusal if someone offers a higher price...at the agreed upon price.

I think insurance is a God Send in these sorts of situations:yes:

[tbeventer]

JAMMA: I have the book loaned out to a friend, but will call and ask who the author is. I happened to fall upon it at a local feed store and snatched it up! He even encourages people to USE the exact form, so there is no copy right on it!



I have a student who is looking at leasing a horse. The owner said they wouldn't require insurance OR that the Leasee pay anything incase the horse dies. My response to the student is that they NEED to have insurance on the horse for the time they ride it to cover THEIR family. Sometimes it isn't just about the Leasor, but if every little last bit is spelt out for the parties involved, when something DOES happen, no one will be able to negate the written and signed document in court.
(Sorry, my legal background coming out.):yes:

[goobs]

I would just put in that you require major medical/mortality and if feasible loss of use insurance. Horses do not have a blue book value. Who is to say that this horse's supposed value will go up or down between signing the lease and if and when she does die? If she dies towards the end of the lease term - she can be deemed another year older and her value can be argued at a lesser amount. I always have in my leases that the horse must be insured. This is an agreed insured amount between both parties. You don't want to be tied up in a legal battle trying to prove (because the burden of proof would be up to you) to a court that your horse was worth x amount at the time of death. Horses are chattel - they aren't a piece of real estate, jewelry or antiques. It wouldn't be worth it. And just because someone signs your contract doesn't mean they cannot contest something like that.

[carrie_girl]

A timely post!
I am in the middle of drawing up a lease agreement for my guy and one of the stipulations is that he must be insured (major medical and mortality) OR the leasee agrees to pay $X in the case of his death and all medical bills. He is not a particularly valuable horse, so I had never insured him. I was amazed at how low the premium estimate was and it is definitely something I will continue when he comes back.

So I guess, I think that clause is fine, but I would add the option of mortality and medical insurance.