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Horse breeding contracts: The live foal guarantee

In most business contracts in Florida and elsewhere, one party agrees to provide a product or service to another in exchange for payment or some other consideration. This usually does not create much of an issue since fulfilling the terms of the contract is often guaranteed. When it comes to horse breeding contracts, that guarantee may not be as easy to rely on for the parties.

For this reason, many contracts include a live foal guarantee. Since many breeding contracts are made prior to the next season, any number of things can occur during the offseason. The mare could die, be sold or become infertile. In other cases, the mare's mating season could already be booked or the mare could already be pregnant.

The embryos of some mares cost tens of thousands of dollars. Any misstep or mistake could be costly, even with insurance, which some companies are now willing to provide. Before purchasing an embryo, more questions may need answering.

Of course, the same could be said for the stallion. Before selling an embryo, researching the semen and fertility of the stallion would be wise. If the stallion cannot live up to expectations, it could take multiple breeding sessions to achieve a pregnancy, let alone a foal. This makes the mare unavailable for breeding with other stallions, which could cause a loss of income from the mare.

Horse breeding contracts are often about much more than just their terms. Giving or receiving a live foal guarantee could put a strain on the relationship between the parties if as many contingencies as possible are not researched. It would be useful to have a Florida attorney who understands the issues facing those who own mares and stallions to help ensure success for the transaction.

Source: equineembryoexchange.com, "Live Foal Guarantee", Accessed on July 2, 2017

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