Getting a refund for a horse, what are my legal rights?

Knowing where you stand from a legal point of view puts you in a good position to act before things go wrong. It’ll help you understand what questions to ask when you’re buying a horse and what to look out for. Here are the laws that apply to you when buying or selling a horse.

Meet the legal expert

Jessica Lees is an avid equestrian and solicitor in the commercial dispute resolution team at Freeths LLP. She’s advised on a number of equine cases including anti-doping proceedings, mis-sold horses and defective horseboxes. She tells us more about the legal ins and outs when it comes to buying and selling a horse.

Consumer Rights Act 2015

Explained…

This Act applies when a private individual is buying the horse from a trader, whose business it is to sell horses. Legally speaking, horses are considered ‘goods’ for the purposes of this Act. Therefore, when horses are bought and sold in these circumstances, they must meet a standard that a reasonable person would consider satisfactory. This takes into account any description of the horse, for example, the horse’s advert, and other relevant circumstances, such as the price. Any verbal or written statements regarding the horse can be deemed to be express terms added into the contract between the seller and the buyer.

Further to this, where the buyer makes known to the seller any particular purpose for which they are contracting for the horse, the horse must be fit for that particular purpose. Every contract to supply goods by description is also treated as including the term that the goods will match the description, and so, for example, if a trader advertises a horse – whether in the advert or verbally – as being ‘suitable for a novice’ and this turns out not to be the case, then the buyer may be able to make a claim under the Consumer Rights Act 2015.

In action…

If a horse doesn’t meet the terms of the contract set out between buyer and seller, in that he’s not of satisfactory quality, fit for purpose or doesn’t match his description, then the buyer has the short-term right to reject. This right can be exercised by the buyer telling the seller that they’re rejecting the horse and treating the contract as at an end. From the time when the right is exercised, the seller has a duty to give the buyer a refund of the amount of money paid under the contract and the buyer has a duty to make the horse available for collection by the seller or to return the horse themselves, as agreed. The refund must be given within 14 days beginning on the day the seller agrees that the buyer is entitled to a refund. The seller must also pay any reasonable costs of returning the horse. The time limit for exercising the short-term right to reject is the end of 30 days starting with the first day after ownership or possession of the horse has been transferred to the buyer and the horse has been delivered.

Where the buyer has lost the right to reject the horse, they must allow the seller one opportunity to repair or replace the horse before the buyer can exercise the final right to reject. However, the right to repair or replacement is difficult to perform when dealing with horses, so is seldom exercised.

Misrepresentation Act 1967

Explained…

Where the person selling the horse is also a private individual, rather than a trader, the Consumer Rights Act 2015 doesn’t apply. Instead, there is a legal principle known as caveat emptor or ‘buyer beware’. This means that the person buying the horse is responsible for reviewing the suitability and quality of the horse before purchasing. But, under the Misrepresentation Act 1967, any false statement made by the seller before the sale, regardless of whether it was said fraudulently, negligently or innocently, can constitute misrepresentation.

In action…

In a scenario where misrepresentation of a horse has occurred, the contract between seller and buyer becomes voidable and the buyer can choose whether to rescind or continue the contract. If they choose to rescind the contract, both parties are put back in the position that they would have been in had the contract never been made – the buyer is refunded, and horse is returned to the seller. If expenses have been paid by the buyer, for example transport fees or a vetting, then it may also be possible for these sums to be claimed as damages.

DID YOU KNOW?

The Misrepresentation Act 1967 also applies when the seller is a trader, putting you in an even stronger position should something go wrong.

Other acts you should know about

Sale of Goods Act 1979 – relevant when the seller and buyer are both acting in the course of business. This act imposes terms for fitness for purposes on the sale, removing some ambiguity.

Consumer Contract Regulations 2013 – applies when the buyer is a private individual purchasing a horse unseen from a seller who is a trader. It gives the buyer the right to cancel the order for the horse from when the order is placed until 14 days from the day the horse is received. A refund should be received within 14 days of the seller receiving the horse back or, if the seller is collecting the horse, within 14 days from the date that the buyer informed the seller that they wanted to cancel the order.

If there’s no agreement over who’ll pay the cost of returning the horse, it defaults to the seller.

As a seller

It’s important to be honest if you’re thinking of selling your horse. Familiarise yourself with the above laws and ensure that any information you give out about the horse conforms to the requirements for the horse to be of a satisfactory quality, fit for any purpose that the buyer has made known to you and that he matches any description you’re giving of him.  Where the buyer is purchasing unseen, the Consumer Contract Regulations 2013 mean that the buyer has the right to return a horse simply because they’ve changed their mind.

Best practice

It’s always advisable to document conversations you have with a potential seller, take particular care to note the age of the horse, any existing issues, his temperament, ability, any quirks or vices and any specific terms of sale expressed by the seller. This is especially important when the seller is a private individual because the Consumer Rights Act 2015 will not apply in this situation.

It is also worth noting that, where the seller is a trader, they cannot exclude or restrict the buyer’s rights as set out in the Consumer Rights Act 2015.

It’s important to remember that the contents of this article are only a summary of the laws in place at the present time and doesn’t contain definitive advice. Specialist legal advice tailored to your circumstances should be sought in relation to any queries that may arise.