When buying a horse goes wrong: how to handle mis-selling
Whether you are buying your first horse or buying another, the process can be a minefield. Deceptive dealers and misleading advertisements can lead to buyers ending up with a horse that doesn’t meet their expectations. This often leaves them hundreds of even thousands out of pocket. While it’s ideal for both the buyer and seller to have a written contract detailing the terms of the purchase, it is more common than not that the purchase is concluded on a handshake.
If you believe you have been mis-sold a horse, the options you may have to resolve matters will depend upon whether you purchased the horse as a private individual outside of business interests or in the course of business (including sole traders). It will also depend upon whether you purchased from a private individual outside of business interests or from a business (including sole traders).
Business to consumer sale
If you purchased a horse as a private individual outside of business interests from a dealer (defined as a “Trader” under the Consumer Rights Act 2015), then the purchaser will be afforded consumer protection under the Consumer Rights Act 2015.
Pursuant to the provisions of the Consumer Rights Act 2015, should the horse not be fit for purpose, of satisfactory quality or not as described, you will have the short term right to reject the house which allows the purchaser 30 days to reject the horse and receive a full refund. Should the statutory 30-day timeframe expire, the purchaser may request a “repair”, if possible, or a replacement. The purchaser must give the dealer at least one attempt to “repair”, if possible. If a “repair” is impossible, then the purchase may request a replacement. If a “repair” or a replacement is not possible, the purchaser may exercise their final right being a right to reject requesting a refund of the purchase price. However, the dealer may reduce the amount they refund for the use of the horse. Alternatively, the purchaser may agree to keep the horse but at a reduced price.
It is important that the purchaser notifies the dealer as soon as the purchaser suspects the horse may have potentially been mis-sold in order to reduce the likelihood of a dispute between the parties that the issues may have arisen since the horse has been in the care of the purchaser.
Business to business sale
If the purchaser and the seller are both acting in the course of business during the transaction, the provisions of the Sale of Goods Act 1979 will apply. Like the Consumer Rights Act 2015, implied terms will be incorporated into the transaction, such as, a term that the horse will be fit for purpose. Should there be a breach of an implied term, this will afford the purchaser remedies, such as, the right to reject. However, whether the purchaser is entitled to a particular remedy very much depends on the circumstances surrounding the transaction.
Individual to individual sale
If the purchaser and the seller are both private individuals acting outside the course of business, the purchaser may have a claim for misrepresentation if they relied upon representations made by the seller which induced the purchaser to purchase the horse and those representations transpire to be false. For example, the seller may advertise a horse as a school master or expressly state to a purchaser that the horse is a school master, but it turns out to be very green in the school. A successful claim for misrepresentation allows the parties to be put back in the position they were in before they entered the transaction.
When a dispute arises in connection with a potentially mis-sold horse, it can be difficult to navigate as the parties often play the blame game regarding the existence of the issues with the horse and when those issues arose. It is important for sellers to be open and honest to potential purchasers to avoid disputes down the line. Equally, it is important for purchasers to make the seller aware of what they are looking for in a horse and the purpose for the purchase. Whether you are a purchaser or a seller, seeking professional legal advice prior to the purchase is the best course or, at the very least, as soon as any issues arise as that may enable matters to be resolved before the dispute escalates and becomes entrenched and the costs of resolving it increase.
For more information, please contact Charlotte Burkert on 01473 617 323 or email [email protected]
