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Horse Lease Agreement With Option To Purchase for Canada

Horse Lease Agreement With Option To Purchase Template for Canada

A comprehensive legal agreement governed by Canadian law that establishes the terms and conditions for leasing a horse with an embedded option to purchase. The document outlines the rights and responsibilities of both the lessor and lessee, including care requirements, payment terms, insurance obligations, and liability provisions. It includes specific provisions for the potential purchase of the horse, detailing the option price, exercise period, and conditions for transfer of ownership. The agreement incorporates relevant provincial regulations regarding animal welfare, sale of goods, and equine activity liability where applicable.

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What is a Horse Lease Agreement With Option To Purchase?

The Horse Lease Agreement With Option To Purchase is a specialized legal document used in Canadian jurisdictions when a horse owner wishes to lease their horse while also giving the lessee the future option to purchase. This arrangement is common in the equestrian industry, allowing potential buyers to thoroughly evaluate a horse before committing to purchase, while providing owners with regular income during the lease period. The document typically includes comprehensive terms covering horse care, liability, insurance, permitted uses, and specific conditions for exercising the purchase option. It must comply with provincial regulations regarding animal welfare, sale of goods, and where applicable, specific equine activity legislation. This agreement is particularly useful for expensive sport horses, breeding stock, or show horses where both parties benefit from a trial period before finalizing a sale.

What sections should be included in a Horse Lease Agreement With Option To Purchase?

1. Parties: Identification of the lessor (horse owner) and lessee, including full legal names and addresses

2. Background: Context of the agreement, including brief description of the horse and parties' intentions regarding lease and potential purchase

3. Definitions: Key terms used throughout the agreement including 'Horse', 'Lease Period', 'Purchase Option', 'Lease Fee', etc.

4. Horse Description: Detailed identification of the horse including name, registration numbers, age, color, markings, and any distinguishing features

5. Lease Terms: Duration of lease, lease fees, payment schedule, and renewal options

6. Care and Maintenance: Requirements for horse care, feeding, exercise, veterinary care, farrier services, and general maintenance

7. Location and Use: Where the horse will be kept and permitted uses (riding, showing, breeding restrictions)

8. Insurance Requirements: Required insurance coverage for mortality, liability, medical/surgical

9. Risk and Liability: Allocation of risk, liability provisions, and indemnification requirements

10. Purchase Option Terms: Purchase price, duration of option, exercise process, and conditions for purchase

11. Default and Termination: Events of default, termination rights, and consequences

12. General Provisions: Standard contract clauses including governing law, notices, entire agreement, amendments

What sections are optional to include in a Horse Lease Agreement With Option To Purchase?

1. Competition and Showing: Include when horse may be used for competitions, detailing permitted shows and division of winnings

2. Breeding Rights: Include if breeding activities are permitted during lease period

3. Training Requirements: Include if specific training regimens or professional training is required

4. Transportation: Include if horse will be transported to different locations, specifying requirements and responsibilities

5. Sales Commission: Include if a third party broker/agent is involved in the transaction

6. First Right of Refusal: Include if lessor wants right to match any third-party purchase offers after option period

7. Assignment Rights: Include if either party may want to assign their rights under the agreement

What schedules should be included in a Horse Lease Agreement With Option To Purchase?

1. Schedule A - Horse Details: Comprehensive description of horse, including photographs, markings diagram, and registration papers

2. Schedule B - Care Requirements: Detailed care instructions, feeding schedule, exercise requirements, and maintenance calendar

3. Schedule C - Veterinary History: Horse's medical history, vaccination records, and ongoing medical requirements

4. Schedule D - Equipment Included: List of any tack, equipment, or other items included in the lease

5. Schedule E - Insurance Certificates: Copies of required insurance policies and certificates

6. Schedule F - Payment Schedule: Detailed breakdown of lease payments, including deposit and purchase option price calculation

7. Appendix 1 - Condition Report: Initial condition report of horse at start of lease, including photographs and veterinary assessment

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Genie AI

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions












































Clauses

































Relevant Industries

Equestrian

Agriculture

Animal Husbandry

Sports and Recreation

Professional Sports

Veterinary Services

Insurance

Legal Services

Relevant Teams

Legal

Risk Management

Operations

Finance

Insurance

Veterinary Services

Property Management

Client Services

Equestrian Operations

Contract Administration

Relevant Roles

Stable Manager

Equine Facility Owner

Horse Trainer

Equine Veterinarian

Equine Insurance Agent

Equine Lawyer

Barn Manager

Equestrian Program Director

Professional Rider

Breeding Manager

Risk Management Officer

Contract Administrator

Equine Business Manager

Show Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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