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Buyer’s
Remorse and Seller’s Recourse
Q:
I had a 14-year-old well-trained ranch horse for
sale. A
couple came out to look at him and decided on the spot
that they wanted him.
They gave me a check and I gave them a bill of
sale that specified the horse was sold “as is.”
They told me they would return with a trailer to
pick up the horse.
A week and a half later, they picked up the horse
and then called me later that day to tell me that they
had a vet check him over and that they didn’t want the
horse because he had ringbone.
They showed up at my place and unloaded the
horse. I
called the vet who had performed
the vet check and he said he’d told the buyers that he
couldn’t tell if the horse has ringbone without
X-rays, which they refused to get.
The horse is sound today.
Three weeks later, I haven’t heard from the
buyers, but I still have their money and their horse.
What are my options?
A:
Because the full purchase price and a bill of
sale changed hands, the sale of the horse was completed.
You were wise to specify in the bill of sale that
the horse was sold “as is,” which makes it very
clear that the sale was not contingent upon the outcome
of a vet check. It
simply appears as though the buyers changed their minds,
but they are bound by the sale contract.
What
this means for you is that you have no duty to continue
to keep this horse, which now belongs to the buyers,
without charge. Accordingly,
I recommend that you immediately send a letter to the
buyers and inform them that they must come and pick up
their horse without further delay and that you will be
charging them board at the rate of X dollars for each
day that the horse remains on your property.
Send the letter via a means that provides for
proof of delivery (e.g., Federal Express).
If they do not respond to the letter or pick up
the horse, you should keep track of board from the date
of sale, being sure to send them itemized invoices
regularly.
One
important note: You have potential liability for any
damage or injury to the horse caused by negligence while
the horse is in your possession.
While the horse is in your possession, you must
take reasonable and customary care of it, including
proper nutrition, health and hoof care.
However, you can also bill these expenses to the
horse’s owners.
Clients
often ask me when they can sell a horse in these types
of situations. Legally,
this horse is the buyers’ property and therefore it
would be a criminal offense for you to sell him.
Interestingly, California animal abandonment laws only
seem to address animals abandoned in public places, not
on private property.
However, under California’s stableman’s lien
laws, you may file a suit to obtain a judgment against
the buyers for unpaid board, and then with that
judgment, obtain a court order to sell the horse to
satisfy the judgment.
If the amount that the buyers owe you is less
than $5,000, you can bring your claim in small claims
court in the county where you live.
Keep in mind that when you sell the horse, you
may keep only the amount of the judgment, and the
remainder must be turned over to the court for
remittance to the horse’s owners. |
