Misrepresentation- how to avoid it when selling horses

Many people will use phrases such as “he’s good as gold” on the sale a horse without giving much thought to it. This can potentially get you in to difficulty,  particularly if he turns out not to be “good as gold”.

It is important to be aware that any statement of fact made by a seller before a sale (whether made fraudulently, negligently or innocently) which transpires to be false and which the buyer had relied on in buying the horse could potentially be a misrepresentation. If a misrepresentation has been made, it makes the sale potentially voidable.

Here are our top tips to avoid a claim for misrepresentation when selling a horse:-

  1. Try to ensure that everything you say about the horse (particularly in writing) is correct.
  2. Make sure that anybody negotiating on your behalf (such as a sales agent) has correct information. If there is something that you would prefer for them not to say, tell them!
  3. Don’t assume that you can only make a misrepresentation by what you do say. A misrepresentation can be made by what you don’t say, or even by your conduct.
  4. Most importantly, ensure that the sale is recorded in a contract with appropriately worded “entire agreement” and “non-reliance” clauses (clauses to confirm that the buyer hasn’t relied on any statements made by the seller before the sale).

Contact us to discuss a misrepresentation issue, or the use of entire agreement and non-reliance clauses.

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