Equine Law Blog

The Seller Misrepresented the Horse You Bought - Now What?

The buyer makes payment and hauls the horse home, but soon after the horse is lame, sick, or dangerous.  The buyer suspects fraud in the sale.  Does he have a case? 

Assessing the Problem

Explore the problem.  Did it pre-exist the sale?  Buyers can consider having a veterinarian or a respected equine professional evaluate the horse.

Legal Theories

Fraud cases can involve several legal theories, such as:

1. Breach of contract.  The buyer must prove the terms of the sale contract and how the seller breached it.
2. Fraud.  The buyer must prove that the seller knew or should have known that the horse had problems but hid them or lied when the buyer asked about them.
3. Breach of implied and/or express warranties.   In some contracts,  sellers “disclaim” warranties or sell the horse “as is.”  These do not always prevent claims of fraud.
4. Consumer protection laws.  Several states have laws addressing consumer fraud and deceptive sales practices.

What Can the Winning Buyer Collect?

Depending on the facts and law, winning buyers could potentially recover:

• Rescission.  Generally, if the court orders “rescission” the horse returns to the seller with a refund to the buyer.
• Refunds. Sellers may be required to refund the difference in value between the horse, as promised, and its real value.
• Attorney’s Fees.  Your chances of recovering legal fees improve if your contract or state law allows this.
• Extra Money.  Some state consumer protection/deceptive trade practice laws allow winning buyers to recover 2 to 3 times the amount of their losses.

Risks of Selling a Horse With Known Problems

Horse sellers should take the buyers' claims seriously.  Consider the risks of holding your ground.

Avoiding Disputes

Buyers can avoid disputes.  For example, buyers can insist on an independent pre-purchase veterinary exam and drug screen.  A well-worded sales contract can help avoid several types of disputes.

Categories: Sales/Disputes