The best way of protecting yourself is to have a contract in place between the parties during the covering process.
What contracts should the parties enter into?
It is usually recommended that the owners of the mare and the stallion enter into a stud agreement, which sets out the responsibilities of each party during the covering process. A stud agreement usually contains the following clauses:
- The details of each party
- Details of the mare and stallion
- Fees
- Warranties by the owner of the mare
- Warranties by the owner of the stallion
- Re-breeding rights
- Ownership of any foals
- Living foal guarantee
- Notice of returns
- Notice of successful breeding
- Terms of livery for the mare and potentially her foal if she already has one at foot
The fees usually include costs for the initial covering, return visits if they are required and fees whilst the mare is at the stud and should be agreed between the parties in advance of entering the agreement.
The parties should both disclose details of any contagious or hereditary diseases that the mare or stallion have as well as information on the horses’ behaviour and any potential issues that could arise during the covering process. If either party fails to provide information about a dangerous behavioural vice that the horse has exhibited before and the horse causes injury as a result then the owner will be liable.
What other information should the stud agreement include?
The stud agreement might also contain information on whether there is a free return provided if the initial covering is unsuccessful, or whether the stud fee is only payable if a live foal is produced, usually called the live foal guarantee. The agreement should also state whether the mare owner needs to take out insurance for any injuries to the mare or the foal at her foot during her stay, and the livery terms should cover what care the mare (and foal) should receive and who is responsible for veterinary fees.
Are any other agreements needed?
Usually the owner of the mare will pay the stud fee and be the sole owner of the foal. However, the owner of the mare and the owner of the stallion may decide to jointly own the foal, in which case it is recommended that they enter a co-ownership agreement before the foal is born.
A co-ownership agreement can help to prevent disputes between the parties about who is responsible or can make decisions on the day to day care of the foal, as well as where the foal will be stabled, who is responsible for paying the livery and other costs, who can authorise any veterinary treatment and the percentage share of ownership each party has in the foal.
Do you need to take out insurance?
It is often advisable to take out insurance when you are preparing your mare to stud, as insurance can cover mares and foals jointly and include cover for Foaling Risk, Prospective Foal Cover against the loss of a foal and vets’ fees.
If you are preparing to send your mare to stud and need further information about stud agreements, speak to one of our Equine Law experts today and find out how we can help. Contact us on 03456 465 465 or email enquiries@rotherabray.co.uk
Disclaimer: This blog is for information only and does not constitute legal advice. If you need legal advice please contact us on 03456 465 465 or email enquiries@rotherabray.co.uk to get tailored advice specific to your circumstances from our qualified lawyers
