In 2011, a new AQHA Rule will allow junior and adult amateur riders to lease horses to show. This rule should greatly expand the pool of excellent horses available to a competitor, as well as continue to provide jobs for those show horses which, for one reason or another, cannot or are not being shown by their owners! Moreover, the rule could allow a prospective buyer who is “trying” a horse, to actually take the horse to a competition and see how well matched the two may be in order to finalize a buying decision. Whatever the reason, those considering leasing a horse must take into account a number of factors in order to avoid costly surprises down the road.
It should go without saying that a good Equine Lease Agreement (“ELA”) will contain a detailed description of the horse being leased.[1] In this case, the ELA will contain the horse’s AQHA registration number and registered name. The lease should also contain information about the horse’s age and identification of the persons making the lease. Lessees, be sure to confirm that the leasor is the registered owner of the horse! The ELA should be for a specified duration, even if automatic renewal or month-to-month type arrangements are included.
The leasor should want to ensure that his horse is maintained on the same feed program, and may want to specify that the horse will have his hoof care and veterinary care performed by certain named professionals. The leasor should want to be notified in the event of any unusual or abnormal behavior or event involving his or her horse.
Identify the conditions of use. If this is a Western Pleasure horse, the owner may want the lessee to stipulate that the horse will be used for no other purpose. The owner of a roping horse may not want the lessee attempting to use her horse to race barrels. The owner of a reining horse may want to have the lessee stipulate to a particular riding and training routine! If the horse is a stallion or mare, the owner will want to include restrictions on breeding the animal. Many times a leasor will want to be sure their show horse remains in an approved training program, and so language about where the horse must be stabled and with whom the horse can go to shows will be important. The leasor may also want to ensure that no one but the lessee, and/or the lessee’s trainer may ride the horse.
The parties to a lease involving a horse that competes in money classes will need specific agreements regarding the payment and tax treatment of prize money. Moreover, with respect to a horse being leased for a specific high performance event, the parties will want to account for the distribution of awards in their ELA.
Insurance may or may not be an issue. With a horse that has and may maintain a high value, the owner will want to insist that the lessee obtain or reimburse for existing insurance coverage. On an older horse, or one otherwise nearing the end of his show career, this may not be as important. The leasor will need a liability release and even indemnification in the event the horse causes damage to another person’s body or property while in the possession and control of the lessee. A common example is a loose horse that causes an accident or runs over a human, typically the injured party will sue the stable keeper, owner, lessee, event manager, and any other possibly liable party.
The more difficult terms about which the parties MUST reach agreement will concern the soundness and maintenance of the show horse. Historically in the sport horse industry, soundness problems have been the more heavily litigated issues. Even though the lessee may be required to obtain major medical and even loss of use coverage on a particular animal, in the unfortunate event of a catastrophic or otherwise career ending injury, threats and actual litigation usually follow. Typically, adverse claims involve allegations that the lessee was grossly negligent in their management of the leased horse. Some of these claims even involve allegations that a lessee allowed the horse to train on dangerous footing. Particular care must be taken in drafting these portions of the ELA. Because this is such an important matter, a lessee should insist that all past lameness, surgeries, treatments, illnesses, or unusual behaviors of the horse be disclosed by the owner/leasor. In some cases it is advisable for the lessee to obtain the equivalent of a pre-purchase veterinary examination to ensure that no latent defects exist which might create problems for the horse during the lease term. It may be that the horse is maintained on a regular schedule of hock injections, necessary for his comfort and continued soundness. Who will pay for this type of maintenance and care during the lease is negotiable, but should not be overlooked.
There can be a myriad of factors to consider in making your ELA and enjoying a successful lease arrangement that makes everyone, including the horse, happy! Many of these factors are dependent upon the age, type, and sex of the subject horse, as well as the nature of the prospective lessee. Because the law imposes liability for placing someone on an unsuitable mount, these considerations must be at the forefront when deciding to whom you might lease your horse. You may not want to lease “Lightening,” who is known to bolt unpredictably, to a six year old boy wanting to do trail classes!
I can attest that leasing a horse is a marvelous way to enhance your riding and horsemanship experience, as well as prolong the careers of many fine animals. My lease last year of a friend's retired Grand Prix horse enabled me to learn the Prix St. George movements, as well as show at FEI level on last year's Florida Circuit. Getting the timing for the pirouettes and tempi changes on this confirmed competitior has been invaluable in riding my very sensative Bon Wilbo. In the sport horse area, horse leasing has been common place for many, many years. With the right agreements in place, leasing should be mutually beneficial, and sometimes a once in a lifetime experience.
LIBERO AT 23 YEARS YOUNG!!!
Please enjoy watching Libero take care of me in our 2010 Palm Beach Derby ride:
Please enjoy watching Libero take care of me in our 2010 Palm Beach Derby ride:
[1] It should be noted that the new rule will require a separate form to be filed with the AQHA in addition to the ELA.
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