Buying and owing horses: knowledge on French equine law

Buying horses in France is becoming increasingly popular as French horse breeders have a good reputation around the world. However, there are a number of legal aspects to consider. In this article we, as French lawyers, provide valuable legal information on purchasing a horse in France as a foreign buyer.

Important questions before buying a horse in France

As a foreign purchaser of a horse in France, it is essential to take note of the following aspects according to prevailing horse law:

1. You should think carefully of all aspects and consequences before buying a horse in France. Because this involves more effort (transport, negotiation in a foreign language, legal help, etc.).
2. Decide on a horse category (foal, youngster or adult, racehorse, dressage, hunter, jumper, eq or hobby horse, breed and many other characteristics) so you don’t get lost in research and end up buying the wrong horse for you.
3. Buying a horse comes with a long-term responsibility. Buying a horse on the spur of the moment while on holiday in the Camargue in order to bring it home to Indonesia or Qatar sounds like a dream, but it can prove to be complicated, expensive and time-consuming. In principle, however, you will have no right of avoiding the contract after signing. If you want to resell the horse, local buyers from your home country may be unsure about a foreign horse.
4. You may need legal help that you cannot get from your in-house lawyer in your home country. Among other things, the topics of the steps of acquisition, the applicable law, the warranty and liability during transport will be clarified. Our lawyers advise you on contract law and defend you in a litigation regarding your purchase in France.

Legal steps in French equine law before acquisition

1. Research: Conduct thorough research on the horse market in France, i.e. comprehensive research on breeders, sellers and sales advertisements. Check the reputation and history of the sellers. With breeders you have the advantage that they have to keep a register of the animals and are supervised by the French authorities. However, the greatest caution is required. The breeder’s reputation should be checked and their facilities inspected.
2. On-site inspection: It is recommended that you personally inspect the horse before purchasing it. This allows you to see the horse’s behavior towards you, towards other horses, in nature etc. and to check its health. It is also advisable to observe the horse during a ride or to ride it yourself to determine whether it meets your requirements. It is of course possible to assign another trustworthy person to do this. The legal conditions of the authorization should be scrutinized.
3. Veterinary examination: It is extremely important to have the horse examined by an independent veterinarian. This gives you more information about the health of the horse and, if necessary, you can uncover hidden defects within the meaning of sales law.
4. Official documents to be handed over by the French seller:
   • the horse passport with the SIRE identification system in accordance with articles L.212-9 and article D.212-47 of the Rural Code;
   • the horse’s identification documents
   • the vaccinations
   • Conclusion of the contract and conditions precedent: The sale of the horse does not have to, still should be recorded in writing in a purchase contract for increased legal certainty in the event of subsequent problems. In the event of a dispute, the contract is of great importance, since it allows the buyer, among other things, to indicate the essential characteristics that he expects from the horse for sale. In this way he can also record his intended use for the horse for sale, such as use as a sport horse. A penalty clause for late delivery may also be provided. Since the purchase contract is often signed before the horse buyer is allowed to take the horse with him, the purchase contract can be concluded subject to conditions precedent, such as:
   • the positive outcome of the examination by the doctor;
   • several horseback rides;
   • the submission of all official documents and travel papers.
5. Transport: Clarify the modalities of horse transport in advance. Determine who is responsible for the transport and what costs are involved. Note that the agreed transport details (e.g. collection of the horse by the buyer in France or delivery to your home country) may determine which court will rule the case in the event of a dispute.

A closer look: how to properly examine the horse before purchase

Examination by a veterinarian is essential. Otherwise, in case of doubt, the principle “bought as seen” applies.

You can choose any vet you want, whereas a French vet will know the French specifications best. If you don’t know who is particularly knowledgeable about horses, you can ask the French associations, riding stables or your French lawyer. You should refrain from the seller’s recommendation of a veterinarian, as the veterinarian may not be objective in the examination. If it turns out too late that the veterinarian has not discovered deficiencies, it will usually be very difficult and expensive to have the court determine malpractice.

It is preferable for the seller to be present or duly represented during the horse examination to prevent any subsequent objections. Should disputes occur later on, these veterinary examination reports become crucial evidence, for example, in French legal proceedings regarding defects.

Which law applies to an international horse purchase?

Various scenarios can arise in this context. The law that applies will be decided by the relevant court (as detailed below) and depends on whether the involved parties are professionals. However, independent of this rule, the parties have the option to mutually agree on the applicable law through a contractual arrangement.

You and the French seller are both professionals:

• For a court proceeding related to the horse sale in a non-EU country: The legal landscape can bemultifaceted with numerous regulations. In this situation, the judge will apply the domestic rules of private international law. These rules might lead either to (i) the domestic law, or the French law as the law of the sale, or (ii) to an international treaty such as the 1980 Vienna Convention, to which France is a party.
• For a court proceeding related to the horse sale in an EU country: In this scenario, the applicable law will be determined by the 1955 Hague Convention or the Rome I Regulation.

You are a consumer and the seller is a professional:

1. For a court proceeding related to the horse sale in a non-EU country: The judge will apply the domestic rules of private international law.
2. For a court proceeding related to the horse sale in an EU country: The applicable law will be determined by the 1955 Hague Convention or the Rome I Regulation. The Rome I Regulation specifies that the law of the country corresponding to the consumer’s usual place of residence will apply, even if that country is not a member State of the EU. For instance, if the buyer resides in the UK, then British law will be enforced. This requirement is contingent on the professional trader conducting business in this country, or in some manner extending his operations there or to multiple countries. In any scenario, the trader’s activities must encompass the buyer’s country, and the horse purchase contract must align with the material scope of his operations. While the parties may agree contractually on the applicable national law, this option is constrained by consumer protection regulations.
    

Which court has jurisdiction over a dispute on a horse purchase in France?

You and the French seller are both professionals:

• a jurisdiction clause has been agreed upon: You cannot sue the seller in your country of residence. If the jurisdiction clause meets specific legal prerequisites for its validity, the court designated within will have exclusive jurisdiction. This signifies that both the seller and the buyer must file their claim before that particular court.
• no jurisdiction clause has been agreed upon: Within Europe, the courts of the state where the defendant is domiciled (e.g., French courts, if the seller is domiciled in France) are generally competent under the EU Brussels I bis Regulation. However, given that a contract has been formed between the parties, the court corresponding to the place of performance may also have jurisdiction. If the EU regulation does not apply, you must refer to the rules of private international law applicable in your country.

You are a consumer from an non EU country and the seller is a professional:

You need to consult the rules of private international law in your home country pertaining to consumer protection to determine which court is considered competent to handle such matters.

Alternatively, you are not restricted from taking legal action against the French seller using the general jurisdiction rules of the Brussels I bis Regulation. This is applicable when the defendant is based in an EU member state. The regulation establishes the fundamental principle that individuals domiciled within a Member State may be sued in the courts of that state, regardless of their nationality. Therefore, you have the option to initiate legal proceedings against the French seller before French courts.

You are a consumer from an EU country and the seller is a professional:

You can sue the seller in your country of residence.

Warranty for defects when buying a horse

According to French equine law, the following rules apply:

• either you have not agreed to a specific guarantee. Then the special statutory and very limited warranty for major defects (garantie des vices rédhibitoires) of the pets applies;
• or you have agreed that the general warranty for hidden defects (garantie des vices cachés) of merchandises applies.

The French consumer law guarantee of conformity, which is more favorable for buyers, is no longer applicable to contracts for pets, including horses, signed from 01/01/2022 on.

The special warranty for major defects of the pets:

The special warranty for major defects allows you as a buyer to achieve either the termination of the purchase contract or a partial refund of the purchase price.

The main disadvantages of this warranty compared to the general warranty in sales law are for the buyer:

1. The limitation to a limited cases of lack of conformity, in particular with regard to the development of scientific knowledge since the laws came into force, namely:
   • Immobility;
   • pulmonary emphysema;
   • chronic wheezing in the larynx;
   • Tick with or without tooth wear;
   • chronic and intermittent lameness;
   • the isolated uveitis;
   • the infectious anemia.
2. The very short deadline for filing a lawsuit or appointing an expert to issue an official opinion on the condition of the horse:
   • Standard deadline: 10 days from the delivery of the horse;
   • Exception periods: E.g. 15 days for bovine tuberculosis; 30 days for isolated uveitis or infectious anemia.

The general warranty for hidden defects in the purchased good:

It is applicable when there is an express or tacit agreement between the parties on the voluntary application of the rules of purchase according to the French Civil Code and not only the rules for animals. The tacit agreement can result, for example, from proof of a special use of the horse intended by the parties.

To make sure that the general warranty covering hidden defects is applicable, rather than just the specific warranty for major defects, it is wise to draft a detailed contract. This contract should explicitly specify the application of the general warranty and include clear explanations concerning the purchase, especially outlining the intended use of the horse.

If you want to successfully claim the horse’s defects, the following evidence must be provided:

1. There is a defect in the horse, i.e. an anomaly in the horse;
2. This defect was hidden at the time of purchase. This term is interpreted differently depending on whether you are a consumer or a trader;
3. The issue existed before the horse was sold. Case law has pointed out that a visit to the vet, consisting of a general examination of the horse, does not preclude the possibility that medical problems in the horse can only be discovered later and are considered hidden defects (Nancy Court of Appeal, September 12, 2022).
4. Finally, there must be a significant defect, i.e. the horse is unfit for the intended use by the buyer or its use is significantly restricted. The materiality of a defect is judged by the specific use specified in the contract (hence the importance of a written contract!), or by the normal, generally expected use of the horse (if no contractual agreement has been made).

Examples of of hidden defects under French horse law

• A horse with 9 spinous processes of varying severity, requiring multiple costly and unsafe treatments. During a doping control, the horse also tested positive due to the treatment (Nancy Court of Appeal, September 12, 2022).
• A horse who, on the day of sale, developed osteochondrosis which had progressed to such an extent that it led to the horse’s lameness. The horse was originally intended for competitions (Toulouse Court of Appeal, June 30, 2015).
• A horse with congenital ataxia (Cour de cassation, 1st Civil Senate, July 1, 2015).
• A horse with chronic lameness of the forelimbs, which made the horse unfit for show jumping (Rennes Court of Appeal, August 15, 2019).

What to do if the horse has a deficiency

If you provide evidence of a hidden defect, you have the choice between returning the horse and getting a refund of the price paid or keeping the horse and getting a partial refund of the price. Furthermore, a distinction must be made as to whether the seller knew about the defect or not:

If the seller was aware of the defect, he also has to pay you compensation. If the seller is a professional, it is presumed that he was aware of the defects in the horse sold. In other words, you don’t have to prove it;
If the seller was unaware of the defect, he has to refund the sale price and reimburse the costs associated with the sale. He does not pay damages.
Note that the claim must be filed within 2 years from the discovery of the defect. Both the duration and the start of the period are therefore more advantageous for the buyer than if only the statutory special warranty for significant defects in the pets applies.

Different solutions are available to you depending on your situation. We recommend that you get advice from a French lawyer to check your options and assess the chances of success of a lawsuit. An amicable agreement can also be reached if the seller has been made aware of the risks of legal action.

It is clear from the decisions on this subject that a warranty claim for hidden defects most often fails because the judges considered the defect to be obvious and/or the intention of the parties to apply the general warranty could not be proven.

From this perspective, certifications can play a crucial role.

Liability during transportation

When transporting horses from France to your home country, there are various legal aspects that need to be considered, in particular regarding liability in the event of damage or loss of the horse during transport.

Typically, the responsibility for transportation falls on the transport company, which is accountable for the welfare of the horse while in transit. However, it’s essential to formalize a contract before the transport begins, clearly outlining the terms, conditions, and liability clauses governing the transportation. This applies:

1. Both towards the horse seller, with whom you can agree that he bears the risks (so-called passing of risk) up to your meadow. If the horse arrives injured, you could, depending on the circumstances, dispute the delivery;
2. as well as towards the transport company, which assumes all risks until it reaches you. If the seller is liable, he should also conclude the transport contract alone and you limit yourself to checking the transport contract.

During transport, the transport company should have the horse checked regularly to ensure that it is well and showing no signs of stress or injury. You can also contractually require the seller to provide you with details of the transport company, their terms of contract and transport material.

Representation by third-parties when concluding a purchase contract

Under French law, a power of attorney is a legal instrument that allows one person to grant authority to another, who is the agent, to act on their behalf. For this power of attorney to be effective, it must be accepted by the proxy holder, who is the individual receiving the authority to act.

Since the purchase of a horse is an act of disposal under French law, the final power of attorney for the purchase of a horse cannot be tacit but must be express. This does not mean that the power of attorney must be in writing, but the written form serves as proof that the power of attorney actually existed.

The primary legal consequence of a power of attorney is to facilitate external representation in legal dealings. In this arrangement, you, as the buyer, maintain the contractual relationship with the seller, whereas the proxy holder, despite acting on your behalf, does not establish any legal connection with the seller.

If the power of attorney has been granted, you still have to pay for the horse that he may have bought too fast, e.g. at an auction in Normandy.

Unless otherwise agreed, the power of attorney is deemed to be free of charge. It is also possible that the authorized person has only limited legal capacity (e.g. underage), but you as the buyer must have legal capacity (e.g., among other things, of legal age) in order to conclude the purchase contract for the horse.

Special case: racehorses

With the racehorse, you hope not only to have fun riding, but primarily to win races.

With this in mind, the general warranty against hidden defects is highly recommended in order to ensure you get the best warranty from the French seller. In addition, the specific purpose and characteristics of the racehorse should be stated in the purchase contract, such as:

1. The origin of the racehorse,
2. the content of the training of the racehorse,
3. the sports performances you expect and
4. the characteristics related to reproduction.

In this context, you should make it clear in writing what you expect from the racehorse so that the seller discloses at the latest when the contract is concluded whether your wishes are realistic or not.

It is also advisable to have an insurance coverage in case of theft, injury etc. As long as the racehorse is still in France before leaving for your home country and already belongs to you, French health insurance for pets could be arranged.

In summary: recommandations

1. Inspect the horse thoroughly: Be diligent in examining the horse for visible defects. For instance, cryptorchidism was ruled not as a hidden defect, but a visible one, since simple palpation of the horse’s bursa could reveal it (Bourges Court of Appeal, July 30, 2015).
2. Plan the drafting of a written purchase agreement: Drafting a detailed purchase contract is vital to ensure adequate warranty coverage.
3. Consult an experienced French lawyer: If you’re dealing with horses, seek the assistance of a knowledgeable French lawyer specializing in equine law. Their expertise can minimize risks and facilitate a smooth and successful purchase.
4. Secure your legal rights when buying a horse in France: Don’t leave your purchase to chance. Book an appointment with our expert French lawyer who can advise in French contract law and take a confident step towards securing your legal rights in your horse or car purchase in France.

By Françoise Berton, French business lawyer

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Photo: Alexia Khruscheva