Be prepared for a buyer to approach you in a few years and offer to sell you your horse, but for much more than you originally sold. The value of your horse may have increased with training, experience, or winnings, so don`t assume you`re paying the same amount you sold your horse. McCabe, JD, is a licensed attorney in all California courts. McCabe, who has worked in the equestrian industry since childhood, earned his bachelor`s degree with a minor in equine science from California Polytechnic State University, San Luis Obispo. She received her law degree from the McGeorge School of Law at the University of the Pacific, where she also earned certification in advocacy. Previously, she worked as an audit consultant for the Institute of Administrative Jurisdictions, where she was mandated by various government agencies to resolve disputes between these authorities and the parties involved in the Agency`s decisions. His experience also extends over several years in the field of intellectual property, labor law and attack procedures. You can learn more about McCabe and his practice of horse law at California Horse Lawyer. «Ennifer A. McCabe If you sell your horse because you think the first right of rejection means you`ll see it again in the future, you should consider selling it. The agreement does not give you control over what happens to your horse. In fact, the buyer may decide never to sell it, or you may get an offer that they cannot refuse and your horse may be resold without your knowledge. Think carefully about whether you are willing to give up your control over the maintenance of your horse.
If you are not, renting your horse may be a better option than selling it. What are people`s rights if they believe someone has violated a right of first refusal? If you are selling a beloved horse and want to make sure you have the first choice to buy that horse again, you can ask the buyer to sign a right of first refusal agreement. But before you make a deal, here`s what you need to know. Be prepared for a buyer to approach you in a few years and offer to sell you your horse, but for much more than you originally sold. The value of your horse may have increased with training, experience, or winnings, so don`t assume you`re paying the same amount as the amount you sold your horse for. In some cases, the first right to reject agreements works well. Some buyers try to contact the former owners of their horses before offering them for sale to the public. But it also depends on the situation and whether the person who bought your horse takes the trouble to contact you.
If someone buys your horse and then comes to sell it to you, you don`t need to buy it. The Seller reserves the right of first refusal if, at any time in the life of the horse, the Buyer cannot or does not want to keep the horse. If the buyer wishes to sell the horse, the buyer agrees to contact the seller and give him the first opportunity to buy the horse. The seller also reserves the right of first refusal to take back the horse if the buyer wishes to place the horse in a new house, but does not require a refund. While it never hurts to include a first-right denial agreement, it`s not something you should rely on.  Julie I. Fershtman, «Rights of First Refusal in Equine Contracts,» Equine Law Blog, March 6, 2012 www.equinelawblog.com/Rights-of-First-Refusal-Equine-Contracts. ; See also Black`s Law Dictionary 1521 (10th edition. 2014) (definition of «right of first refusal» as «[a] the contractual right of a potential buyer to comply with the terms of a third party`s superior offer»).
 «Rights of First Refusals in Horse Sales,» Equine Legal Solutions, accessed at: www.equinelegalsolutions.com/firstrefusalrights.html. First refusal clauses sometimes lead to litigation in the horse industry. This can happen when horse buyers file their contracts and forget years later the promises they made. Sometimes these clauses are so unclear or unenforceable as written that the parties do not understand their rights and obligations. In some cases, first refusal agreements work well. Some buyers try to contact the former owners of their horses before offering them for sale to the public. But again, it depends on the situation and whether the person who bought your horse takes the trouble to contact you. A «right of first refusal» is a right granted under a contract that requires the person who has purchased or received a horse, under certain conditions, to give the seller the opportunity to re-own the horse if or when the buyer wishes to separate from the horse. If you want to sell a beloved horse and make sure you have the first choice to buy the horse again, you can ask the buyer to sign a right of first refusal.
But before you make a deal, here`s what you need to know. Unfortunately for the former owner of the horse who had the first right of refusal (Part A), his claim is not directed against you (Part C), but against the seller (Part B). As long as you (the buyer) have a valid purchase agreement with your seller, I can`t think of a scenario where a court would order you to return the horse to the person with the first right of refusal. What are people`s rights if they believe someone has violated a right to education? So, what is a «first right of rejection» in a contract? Do you understand why I hate the first right of rejection? This contractual clause is rather a way to show the intention of the parties (which often goes very far), but it is very unlikely that it will be applicable once we find ourselves in the situation posed by this reader. While it never hurts to introduce an initial right of refusal, it`s not something you should rely on. If you include «right of first refusal» clauses in your horse purchase contracts, design the wording very carefully and consider looking for a lawyer who will help. Horse sellers who rely on these clauses may want to remind buyers of this over time before the buyer puts the horse on the market. It can also help the buyer inform others that all sales are subject to a right of first refusal. Jennifer A.  Brad Butler, Realizing Value and Creating Protection: A Practical Approach to Monetizing the Value of A Racehorse while retaining control over Future Interests, 7 KY.
J. EQUINE, AGRIC. & NAT. RESSOURCES L. 93, 113-14 (2015). If someone buys your horse and later comes to offer to sell it, you don`t have to buy it. If a seller offers it to you, he will give you the first chance to buy it, but a first right of refusal does not require you to buy the horse. You can submit the offer at any time. A feature of many horse transactions is that the seller often links the sale of a horse to the buyer`s promise to inform the seller if the buyer wants to sell the horses and to give the original seller the opportunity to buy the horse back. This is called a right of first refusal («RFR»). RFR regulations are often found in demanding transactions between racehorses and show horses.  In many cases, high-value horses are divided into shares and are jointly owned by several parties.
Shareholders of a horse use an RFR provision when buying a horse together, so that when a shareholder receives an offer for their share, the other shareholders have the option of acquiring that share in the horse.  Clauses relating to the right of first refusal require careful drafting and attention. For your protection, contact a lawyer. RFRs are also convenient for less demanding sellers of lower-value recreational horses. The problem is that RFR agreements are often broken and sellers are unable to buy horses back when buyers get rid of them.  First, these agreements fail because, in many cases, they are not enforceable for lack of consideration […].