Equestrian

Contract & Misrepresentation (applicable to all sales of horses)

The law of contract and principles of misrepresentation apply to the sale of horses throughout Australia, whether the seller is making a one-off private sale or is engaged in the business of selling horses. A purchaser can bring a claim for breach of contract or for any false or misleading representation.

When selling a horse, particular care should be taken to ensure that any representations — often statements made in advertisements or social-media posts — can be factually justified. Sellers should be able to support any claim about a horse’s temperament, behaviour, soundness, or suitability with evidence. This includes all forms of communication: text messages, emails, videos, and phone calls, which may later be relied upon as evidence.

Representations about a horse’s suitability for a particular rider or purpose (for example, for a novice, competitive rider, or someone returning after injury) can create binding legal obligations. As demonstrated in recent cases such as Hegarty v Pryor [2022] NSWCATCD 206, phrases such as “no nasties”, “kind and easy-going”, or “consistent” can be found to be false or misleading if the horse later displays dangerous or unpredictable behaviour.

Disputes commonly arise regarding representations about fitness for a disclosed purpose or suitability for particular disciplines such as eventing, dressage, show jumping, or campdrafting. These situations place a high onus on sellers to exercise reasonable skill and judgment when describing a horse for sale.

Contract between Seller and Buyer (applicable when selling a horse)

In a private sale, a written contract between seller and buyer should clearly set out the agreed terms. While a contract cannot exclude statutory consumer guarantees, it can record exactly what has been represented and limit reliance to those written terms. This helps reduce ambiguity if a dispute arises later.

Contract between Seller and Buyer (applicable to all sales of horses)

The contract can also specify practical matters such as:

• whether the sale is subject to a satisfactory veterinary inspection,
• whether any deposit is refundable,
• when the title to the horse passes from seller to purchaser,
• who bears responsibility for transport, injury or loss during transit.

Clarity on these terms helps both parties manage risk and expectations in any horse sale contract in Australia.

Consumer Laws (applicable to sales in business or trade)

Australia’s consumer laws impose strict duties on sellers, particularly those operating in trade or commerce, and provide wide-ranging rights to buyers of horses purchased for personal, domestic or recreational use. Contracting out of these guarantees — such as those under the Australian Consumer Law (“ACL”) — is not permitted.

Each state and territory has adopted the ACL (for example, see Part 2 of the Fair Trading Act 1987 (NSW)).

Under Part 3-2 of the ACL, the main Consumer Guarantees relevant to horse sales include:

• Acceptable quality — the horse must be fit for the purposes for which horses of that kind are commonly purchased, and free from significant behavioural or physical defects.
• Fitness for any disclosed purpose — if the buyer discloses a particular intended use (for example, a quiet, predictable mount for a rider recovering from injury), the horse must be reasonably fit for that purpose.

False or misleading representations and misleading conduct can carry civil and criminal penalties. Since 2022, the maximum penalties for companies under the ACL are the greater of $50 million, three times the value of any benefit obtained, or 30% of adjusted turnover during the period of the breach. For individuals, penalties can exceed $2.5 million.

Examples of prohibited conduct include misleading advertising, overstating quality or value, or describing a horse’s temperament inaccurately. In Hegarty v Pryor, the Tribunal confirmed that even well-intentioned but inaccurate statements about a horse’s behaviour can amount to misleading conduct under section 18 of the ACL.

Sale of Goods Act (various provisions apply to business sales)

The Sale of Goods Act 1923 (NSW) also imposes implied conditions on sellers in certain business sales. When the buyer makes known the purpose for which a horse is required and relies on the seller’s skill or judgment, the horse must be fit for that purpose (section 19(1)).

A seller who deals in horses of a particular description also provides an implied condition that the horse is of merchantable (acceptable) quality. A purchaser’s examination may exclude this condition for any defect that should reasonably have been discovered during inspection. Sellers are encouraged to allow buyers to carry out both ridden trials and veterinary examinations before completing the sale.

Contract between Seller and Buyer (applicable to sales in business and trade)

A written contract remains an essential risk-management tool for professional or business sellers. While sellers cannot exclude legislative obligations, the contract can record:

• the intended purpose disclosed by the buyer,
• that the buyer has had the opportunity for inspection and a veterinary examination, and
• any specific representations or limitations agreed between the parties.

Such documentation will not remove liability under the ACL but can clarify what was represented and relied upon, assisting in the defence or resolution of disputes.

Managers, directors, and equine-business owners should remain alert to their potential civil and criminal exposure under the ACL and fair-trading legislation. Seek specialist legal advice before responding to or defending any claim.

Koffels Solicitors & Barristers are Australia’s leading Equestrian Law firm, advising clients nationwide on all aspects of buying, selling, leasing, and owning horses.