INSTRUCTIONS IN USING THIS TEMPLATE AGREEMENT
GENERAL. These forms were prepared to be comprehensive but cannot address every unique circumstance or situation. Please consult an attorney to ensure that all legal requirements have been complied with.
COMPLETING THE TEMPLATE AGREEMENT.
When preparing the form for the sale of a horse, make sure that the following information is complete and accurate:
1. Name and address of the buyer and seller. If any one of the parties is a legal entity such as a Trust, Pty or close corporation, make sure that the correct name is included as a party and the person signing has proper authority by resolution of the trustees, directors or members of the entity.
2. Insert the proper amount for the purchase price. If it is an instalment sale, ensure that you have discussed the interest and include that in the Agreement if an instalment payment.
3. If an instalment sale, ensure that you have included a provision for late fees or returned checks. The advantage for this is to further offer incentive to the buyer to timely make his/her payments and also recognizes the administrative cost of following up with late or missed payments.
4. Make sure that the agreement is clear as to when and who is paying for any incidental expenses for the care and maintenance of the horse during the instalment. Typically you will want the buyer to assume and pay all these expenses.
5. If the sale of the horse is subject to a veterinary examination, contingencies, make sure the contingencies are spelled out clearly and with a specific time or date for completion of any examination or inspection of the horse.
6. Also, review the representations and warranties set forth by both buyer and seller. Make sure those are accurate at the time of the agreement.
7. Make sure that the parties include their correct and most up to date addresses for purposes of giving notice and for purposes of identifying the location of the horse if the deal is an instalment sale.
8. Always ensure that you take the opportunity to ask questions regarding the horse and document the responses received to your questions. It is always best to put everything in writing in your agreement. There is a risk that anything not in the written agreement may not be enforceable.
10. As a seller, make sure that you insist upon a bank guaranteed check or other certified funds. Make sure you receive payment in full or in part, before relinquishing possession of the horse.
HORSE SALE AGREEMENT
1. PARTIES.
This Sale Agreement (the "Agreement") is being entered by and between:
Name: ______
Address:______
Tel: ______Fax: ______Email: ______
(“Seller”)
and
Name: ______
Address:______
Tel: ______Fax: ______Email: ______
(“Buyer”).
2. THE HORSE PURCHASED.
2.1. Description. The Seller agrees to sell the following horse/s:
(name) ______
(registration number) ______
(colour/ markings) ______
(sex) ______,
(“Horse”).
3. PURCHASE PRICE.
3.1Buyer shall pay Seller R______(______Rand) (“Purchase Price”) for the Horse.
3.2 The Purchase Price shall be paid in cash or other certified funds upon tender of delivery of the Horse to the Buyer.
Alternatively, if the parties agree to an instalment sale agreement, the following terms will apply:
3.3. Buyer shall pay Seller R ______(______Rand) as an initial payment after the execution of this Agreement, by latest ______.
3.4 The remaining balance of the Purchase Price shall be payable in equal monthly instalments of R ______(______Rand) each. The first instalment shall be due on the ______day of______(month and year) with a like payment on the same day of each successive month thereafter (hereafter “Due Date”) until the Purchase Price and all other charges are paid in full.
3.5 The unpaid Purchase Price shall bear simple interest at the rate of ______% per year. Buyer may prepay the remaining balance of the Purchase Price at any time.
4. POSSESSION AND OWNERSHIP
4.1 Seller shall tender possession of the Horse to Buyer on ______at the Horse’s location upon receipt of the Purchase Price or the initial payment, from the Buyer.
4.2 The Seller reserves ownership of the horse irrespective of earlier tendering of possession. Upon Seller’s receipt of the Purchase Price, in full, Seller shall provide Buyer with Horse’s registration papers, if any, and all other documents necessary to transfer registration of the Horse from the Seller to Buyer.
4.3 After payment of the full purchase price, the Buyer will become owner of the horse, irrespective of the registration of transfer of the ownership that has not taken place. The parties shall co-operate to ensure that registration of transfer of ownership be effected as soon as possible after payment of the full purchase price.
5. SUSPENSIVE CONDITIONS
5.1 Veterinary Examination. Buyer’s obligation to Purchase the Horse is subject to an inspection and written certification by a licensed veterinarian, paid for by the Buyer, that the Horse is in good health and physical condition, fit for the intended purpose or use contemplated by the Buyer and also more specifically for the other following other health issues: ______
5.2 Designated Veterinarian. The parties agree that the following named veterinarian shall perform the examination: ______.
5.3 The agreement is subject to the following further suspensive conditions:
______
5.4 From the Effective Date of this Agreement the parties shall have ______days to fulfil the suspensive conditions, where after the agreement shall lapse and be of no further force and effect.
6. SELLER’S REPRESENTATIONS AND WARRANTIES.
The Seller makes the following representations:
6.1.To the best of Seller’s knowledge, the Horse is in good health and condition.
6.2 Seller has provided Buyer with copies of Horse’s vaccination records and other veterinary records in possession of Seller, which are a true and correct reflection of the horse’s recent medical history and vaccination record.
6.3 Seller is the sole owner of Horse and has authority to enter into this Agreement.
6.4 There is no lien or encumbrance on the Horse.
7. RISK OF LOSS.
Upon the Tendering of Possession of the Horse as defined in paragraph 3.2 above, Buyer assumes all risk of loss or injury to Horse.
8. BUYER’S REPRESENTATIONS AND WARRANTIES.
The Buyer expressly represents and warrants the following:
8.1 At all times Buyer is indebted to Seller for the Purchase Price of the Horse, Buyer shall provide and pay for all reasonable equine care for the Horse, including but not limited to board, food and water, veterinary care, hoof care, grooming and exercise.
8.2 At all times Buyer is indebted to Seller for any part of the Purchase Price of the Horse, Buyer shall board the Horse at: ______(address)
8.3 Until the Purchase Price is paid in full, Buyer shall not remove Horse from the location specified in paragraph 7.2 above for any reason except with the prior written consent of Seller, or for bona fide showing purposes.
8.4 Buyer or his delegate has ridden the horse and is satisfied with horse's training & behaviour.
9. DEFAULTS; REMEDIES.
9.1. The occurrence of any of the following events constitutes a default and breach of this Agreement by the Buyer:
9.1.1 The failure by Buyer to make any instalment payment or any other payment required to be made by Buyer hereunder, as and when due, where the failure continues for a period of 10 (TEN) days;
9.1.2 the failure of any party to observe or perform any of the covenants, conditions or provisions of this Agreement.
9.2. If Buyer is in default or materially breaches this Agreement, Seller shall have the right at any time thereafter, without notice or demand and without limiting Seller in the exercise of any right or remedy which Seller may have by reason of the default or breach to:
9.2.1) declare the remaining unpaid Purchase Price immediately due and payable upon written notice to the Buyer;
9.2.2) Terminate Buyer’s right to possession of the Horse and be entitled to repossession of the Horse, in which case this Agreement shall terminate and Buyer shall immediately and voluntarily surrender possession of the Horse to Seller. If Seller takes possession of Horse, Buyer will have ______(days) days from the date that Seller takes possession of Horse to deliver the remaining amount of the Purchase Price to Seller, plus any expenses incurred by Seller in recovering possession of Horse. If Buyer does not deliver the remaining unpaid Purchase Price plus Seller’s expenses to Seller within the ______(day) period, Seller may retain all monies paid by Buyer pursuant to this Agreement and Buyer shall forfeit any right, title, interest or claim to the Horse;
9.2.3 Pursue any other remedy now or hereafter available to Seller;
9.2.4 Additionally, Seller shall be entitled to recover from Buyer all damages incurred by Seller by reason of Buyer's default including, but not limited to the cost of recovering possession of the Horse and reasonable attorney's fees and court costs.
9.3 Any unpaid instalments or other sums shall bear interest from the date due at the rate of _____ percent (__ %) or the maximum rate permissible under state law.
9.4. Seller shall be in default if he fails to perform obligations required of it within a reasonable time, but in no event later than 10 (TEN) days after notice by Buyer to Seller, specifying in what manner Seller has failed to perform such obligations.
10. NOTICES.
All demands, notices, consents, or other communications required or permitted to be given or sent by either party to the other, shall be deemed to have been duly given at the addresses, fax numbers and emails in the heading to this agreement which are the chosen domicilium citandi et executandi of the respective parties.
10.1 if delivered, by personal delivery, when delivered,
10.2 if mailed, ten business days after being sent by, certified or registered mail, return receipt requested, and postage prepaid, to the elected addresses of the respective parties.
10.3 if sent by facsimile or electronic mail, upon transmission to the elected facsimile numbers or email addresses
10.4 if sent by courier, the business day after being sent by a nationally reputable overnight courier service.
11. ARBITRATION AND DISPUTE
11.1 Should any dispute or difference arise between the Parties concerning their respective entitlements and obligations in terms of this Agreement, then that dispute shall be submitted to and decided by Arbitration in terms of this clause.
11.2 The Arbitration shall be held in the jurisdiction where the horse was sold and conducted in accordance with the Rules for the Conduct of Arbitrations prescribed by the Association of Arbitrators (Southern Africa) at the time that such dispute or difference arises, and in accordance with the provisions of the Arbitration Act, No. 42 of 1965, of the Republic of South Africa.
11.3 The Arbitrator shall be an independent suitably qualified person agreed upon by the Parties, and failing such agreement, shall be a practising Attorney or Counsel of not less than 10 (TEN) years of practise and nominated by the Chairman for the time being of the Law Society of the Republic of South Africa.
11.4 The Parties to this Agreement agree that the decision of the Arbitrator shall, unless both Parties unanimously decide otherwise, be binding upon them, and shall be carried into effect and could be made an Order of any Court of competent jurisdiction.
11.5 The Parties agree that until such time as the decision of the Arbitrator has been handed down, KON shall be entitled to continue operating in terms of and in accordance with the provisions of this Agreement.
11.6 This clause does not prohibit the Seller to proceed with summons and other remedies in a magistrate, regional or high court for recovering of any outstanding payments and related remedies.
12. VARIATION
No variation or alteration of this contract shall be of any force or effect unless same is recorded in writing and signed by or on behalf of the parties hereto. No relaxation or indulgence which may be allowed by either party at any time in regard to his performance of any of his obligations in terms of this contract, shall be construed as a waiver of or prejudice his rights under this contract.
DATED at ______on the ____ day of ______2016
AS WITNESSES :
1. ______
SELLER
2. ______
DATED at ______on the ____ day of ______2016
AS WITNESSES :
1. ______
PURCHASER
2. ______