Get it in Writing: Yes - on paper! Yes - with a signature! Verbal agreements are not worth the paper they are written on! Disputes in among horse owners arise because the parties involved did not take the time to write down their agreements. Written contracts are an inexpensive and simple way to protect the relationships, reputations and investments that are at stake when a dispute arises. Verbal contracts that are later disputed are costly and time consuming to sort out, especially when the parties end up in court because they can not even agree on the terms of their original understanding.

• All parties to a contract need to sign the contract.
• Only parties over 18 are able to form legally binding contracts.
• A parent can only waive their own rights. They cannot waive rights for their children. A spouse or parent can not waive rights of the other spouse or parent.
• If you use Fill in the Blank forms, make sure that the blanks are correctly filled in. A signature on a blank form is useless, as is a correctly filled out form without a signature.

Once you get it in writing … Keep it: The best contract in the world will not help you if you cant locate it. Keep paperwork and records in a safe, convenient location. If your stable office has public access, it is best to have a locked file cabinet.

Documents to get in writing:

• Liability releases: Many states have recently revised their State Codes regarding the equine industry. Know your state’s law and follow it. Many states will strictly enforce liability releases but ONLY if the release contains very specific “magic words” and appropriate signatures. These magic words are different in each state and signatures are mandatory.
• Do not allow riders without a release. No exceptions.
• Only person over the age of 18 may sign a valid liability release. If your rider is under 18, you MUST have the signature of their parent or guardian.
• Accident reports: Time, date and circumstances of the incident and any remedial actions taken. Be sure to get the name, address and phone number of the injured person as well as any witnesses and employees on staff at the time.
• Lease contracts: Any leases for riding, stud or broodmares are minefields of potential legal issues. Make sure you write down the terms clearly and specifically. Is it a lease, loan or a purchase? What are the payment terms? What if payments are not made in a timely fashion? Who is responsible for upkeep expenses? Who is responsible for which vet expenses? If there is a medical emergency, how do you want it handled? If the horse is damaged or dies during the course of the lease, who is responsible for the value? What if lease payments are not made in a timely fashion?
• Boarding/grazing contracts: State responsibilities of each party including payment, medical and veterinary care, emergency situations and remedies for default of contract provisions.
• Buy/Sale contracts: Make sure the values, payments schedules and provisions for default of payments are clearly addressed.

Develop stable procedures and follow them: Develop stable safety procedures for horses, riders, visitors and staff. Follow them. No exceptions. If there is an issue at some point, it is much easier to convince a judge that you followed the proper safety precautions if you have a clearly written policy. Nothing can beat a solid reputation as a stable that is known for strict adherence to safety policies.

Have liability release signs visible and prominent: Many states offer broad protection to stables and equine owners, but only if you follow that State’s Code requiring these signs to be visible and prominent. Most statues require signs stating that “Horses and horse activity are inherently dangerous and may result in injury or death”

Know when to stop talking: The horse industry is built on friendly neighbors. Business is handled with a handshake during conversations regarding the kids. However, when a dispute arises, it is important to know when to stop talking, especially if either party may resort to legal options. Staff and clients can inadvertently misconstrue facts to the wrong people, making the “He said” “She said” impossible to unravel. If a difficult situation arises the best option is to be supportive and understanding in as concise a manner as possible. Often a listening ear is what most people are looking for in those situations anyway.

Friends who are business partners are still business partners: A frequent issue occurs when one equine business partner belatedly discovers that their friend and fellow partner engaged in unauthorized or fraudulent activities under the name of the stable. In this case, usually the stable is responsible for the activities of the partner. One easy way to avoid this situation is to have a business agreement or contract stating the understandings, terms, responsibilities and limitations of each party. If there is a problem later on, then it is much easier to convince a judge that you are not the liable party.