A lot of horse owners call in complaining of disputes with their partner in a horse. Most disputes arise when a partner quits paying his or her share of the expenses on the horse, or when one partner wants to sell the horse and the other does not. Most predicaments arise when there is no written
Profit-sharing arrangements between a horse owner and his or her trainer are commonplace in the horse industry. They are often referred to as “partnerships,” but a written contract is seldom used. I strongly advise my clients against doing any kind of profit-sharing or partnership arrangement without putting the terms in writing. I have seen countless relationships between owners and trainers break down over a profit-sharing deal, and it generally happens because the parties had a different idea about what the agreement was supposed to entail. These disputes can get ugly, and sometimes law enforcement even becomes involved in disputes over possession of the horse.
Usual Scenario. The typical profit-sharing arrangement usually arises when the owner and trainer agree that the trainer will train, board, and promote the horse free of charge or at a very discounted rate to the owner in exchange for an increased percentage of the horse’s racing proceeds or a percentage of the proceeds from selling or breeding the horse.
Essential Documents. The following documents should be drafted to fit your specific terms and executed by the appropriated parties:
* A purchase and sale agreement between the owner and seller;
* A bill of sale transferring title of the horse from the seller to the owner; and
* A profit-sharing agreement between the trainer and owner.Continue Reading Legal Documentation for Owner / Trainer Profit Sharing Deals