Equine Law Blog

Should a Boarding Contract Stipulate to a Horse’s Value?

Some boarding contracts specify that the boarded horse has a stated value. For example, the contract might state: “The parties agree that the horse boarded under this agreement is worth $15,000.”

Is this a good idea? Opinions differ.

• Inconsistency. If the boarding contract includes a well-written release of liability pertaining to the boarded horse (where allowed by law), does the stating of the value lend itself to an inconsistency? A confusing contract does little to prevent disputes.
• Unrealistic expectations. Does the stating of a boarded horse’s value create unrealistic expectation that the stable will automatically reimburse the boarder a stated amount if something happens to the horse? Even if those expectations have no foundation in the contract, it makes sense to avoid creating them.
• Competency. Stable owners are not necessarily equine appraisers, nor are horse owners. Stipulating to a boarded horse’s value, for whatever purpose, is a mere guess —and for a questionable reason.
• Changes in value. What if the parties stipulated to a value of the boarded horse while the horse was at the peak of its value, such as excelling in horse shows, but over the years the horse retired or became unsound. If the contract has not been adjusted accordingly, the parties may have created a problem for the stable and a potential windfall for the owner.

The safest approach, in our opinion, is to consider avoiding these types of clauses altogether unless your lawyer suggests that they are appropriate for you based on the circumstances of your business or your state’s law. For your protection, your lawyer can also draft or review the clause along with the rest of the contract. Discuss your contract with a knowledgeable lawyer.

Categories: Boarding, Contracts