Equine Law Blog

Who Are You Contracting With? The Importance of Identifying Parties Properly

The right contract language can help avoid disputes or reduce your expense if a dispute should arise.  Details can separate marginal contracts from effective ones. Details can also help prevent legal disputes.  A key detail to consider for a contract is identifying the parties involved.

Surprisingly, many people in the horse industry fail to sign their own contracts properly.  This can happen, for instance, when a professional signs breeding contracts, boarding contracts, sales agreements, or leases on behalf of an equine business but neglects to name the business entity as the true party to the contract.  Here are some examples of how this problem can be prevented:

If the equine professional is a general partnership, the contracts can specify, for example:

Auspicious Show Horses, a Missouri General Partnership
By: _______________________________
Gene A. Winner, General Partner on Behalf of the Partnership

If the professional is a corporation, the contract can specify:

Auspicious Show Horses, Inc.,
a California corporation
By: _______________________________
Gene A. Winner, President

If the professional is a limited liability company, the contract can specify:

Auspicious Show Horses, LLC
A Michigan limited liability company
By: _______________________________
Gene A. Winner, Managing Member

By comparison, if the equine professional is a sole proprietor doing business under an assumed or fictitious name, the contract can state:

Sue Ellen Green, d/b/a Blue Ribbon Farms
By: _______________________________
Sue Ellen Green

Attention to these details can be critical factors in the validity of the contract.  Not only will parties be better advised of the true identity of the other, but properly naming the business entity could help avoid legal challenges against the business entity’s individual proprietors.

Discuss these and other provisions of contracts with a knowledgeable lawyer.

Categories: Contracts