Although the Animal Protection Act clearly states in its first sentence that: “an animal, as a living being […] is not an object” – from the perspective of the topic discussed, we will have to approach it somewhat like an object. However, literature emphasizes that an animal is formally not an object. It is a material entity but not a thing (M. Kulik, M. Mozgawa, The Conflict Between Article 35 of the Animal Protection Act and the Provisions on Damage to Objects, 2011). The sale and purchase of horses among non-professionals often rely on the emotions accompanying the purchase of the animal. This is not surprising. Often, the contract is not formalized, and the information about the horse’s health condition is based only on the seller’s assurances. So, on what terms is the seller responsible for hidden defects in the horse? Do the provisions on warranty apply to the sale of a horse? What can the injured buyer demand from the seller, and on what grounds?
Sale of a Horse Agreement – Protect Your Interest
The sale of a horse agreement, like any other, is a civil law agreement. It is regulated in Articles 535-555 of the Civil Code of April 23, 1964 (Journal of Laws 2023, Item 1610; hereinafter referred to as the “Civil Code”). Concluding the contract in writing, with properly formulated terms, positively influences the buyer’s position from the start. Proving that the sale agreement was concluded verbally, for example, is time-consuming and often negatively affects the buyer. After all, it will be up to the person making the claim to prove that the legal relationship existed. Often, it is impossible to prove the existence of specific terms that were discussed, for example, in a telephone conversation, which may protect one of the parties to the contract. Therefore, it is worth securing your interests from the very beginning.
When purchasing a horse, make sure that the agreement, which you bring to the seller or which is presented to you by them, includes the following elements:
- Date and place of the contract conclusion;
- Identification of the parties to the contract: name, surname, ID number and series, PESEL number;
- Description of the object of the agreement: horse’s name, breed, passport number, date of birth, coat color, identification of the horse’s parents;
- The price of the horse;
- A statement that the horse is owned by the seller, has no hidden defects, is healthy, there are no third-party rights to it, it is not subject to any legal proceedings or securities, and the pedigree matches the breeding document and passport;
- A statement transferring ownership rights of the horse from the seller to the buyer;
- A statement that the Civil Code provisions apply to matters not regulated by the agreement;
- A statement that the agreement was drawn up in two copies.
It is also worth ensuring that the horse is examined by a veterinarian before purchase. Their professional evaluation can help avoid unnecessary later problems and costs associated with them. Additionally, using the services of a veterinarian, in case a defect is discovered in the horse, may provide the buyer with additional leverage in price negotiations.
Hidden defects of the horse and civil liability of the seller
As mentioned above, the sale of a horse agreement is a standard sale contract. The seller is responsible towards the buyer if a defect is discovered in the sold horse. Therefore, the provisions on warranty apply to the sale of the horse. However, the seller will not be liable under the warranty if the buyer knew about the defect at the time of the contract conclusion (Article 557 § 1 of the Civil Code).
Under Article 556 (1) of the Civil Code, a defect means a non-compliance of the sold item with the agreement.
In particular, the sold item is non-compliant with the agreement if:
Article 556 (1) of the Civil Code
- It lacks the properties that the item of this type should have regarding the intended purpose specified in the agreement or arising from the circumstances or intended use;
- It lacks properties that the seller assured the buyer of, including by presenting a sample or model;
- It is unsuitable for the purpose the buyer informed the seller about when concluding the contract, and the seller did not object to such use;
- It was delivered to the buyer incomplete
However, it should be remembered that the seller is liable under the warranty for physical defects that existed at the time the risk passed to the buyer or resulted from a cause present in the sold item at that moment (Article 559 of the Civil Code). In court proceedings, it will be the buyer’s responsibility to prove that the defect existed at the time the agreement was concluded.
According to the general rules outlined in Article 6 of the Civil Code, the burden of proof regarding both the existence of the defect and the existence of the defect at the time of the transfer of risk lies with the buyer. The buyer must demonstrate not only that a defect exists but also that it existed when the risk was transferred or that the defect resulted from a cause present in the sold item at the time of the transfer of risk.
Commentary to Article 559 of the Civil Code, M. Załucki, Civil Code Commentary, Warsaw 2023, 3rd Edition, SIP Legalis, note 3.
In this context, it is worth citing a case before the Włocławek District Court. The buyer of the horse filed a lawsuit for payment. The buyer demanded a refund of the purchase price of the horse due to a defect of a cracked hoof. This defect resulted in the withdrawal from the agreement. The District Court, in its judgment of May 22, 2019, I C 3339/16, dismissed the lawsuit. The judgment was upheld by the Włocławek Regional Court on March 5, 2020, I Ca 159/19. Both decisions were based on an expert opinion. The expert stated that they could not definitively determine whether the defect existed before the sale date or appeared after the purchase. In this situation, the court could not allow the buyer’s claim.
Revealing hidden defects in the horse after purchase – what next?
The Civil Code primarily obliges the seller to promptly replace the defective item with one free of defects without undue inconvenience to the buyer (see Article 560 § 1 of the Civil Code). Of course, in the case of a horse, such an opportunity is rarely possible. At least, in transactions between private individuals. Therefore, the most realistic solution when a defect is discovered in the horse is for the buyer to submit a statement regarding the price reduction or withdrawal from the contract.
The reduced price should be in proportion to the contract price, depending on the difference between the value of the horse with the defect and the value of the horse without the defect (see Article 560 § 3 of the Civil Code). All activities related to submitting statements on price reduction or withdrawal from the contract should be done by mail. This form ensures that such critical documents – from the perspective of a potential lawsuit – will be delivered to the seller effectively.
Seller’s liability under warranty – deadlines for claiming compensation
The seller is liable under the warranty if the defect is found within two years from the day the horse was delivered to the buyer. A claim for the replacement of the horse with one free of defects expires one year after the defect is discovered. The buyer may submit a statement on withdrawal from the contract or a price reduction within a year from the date the defect is discovered.
Hidden defect of the horse – refund for maintenance costs
The main costs for the buyer, in addition to transporting the horse to the new stable, will be its daily maintenance. In the case of discovered defects in the horse, this will also include the cost of veterinary services and other specialists. It is worth documenting all expenses related to the newly purchased horse (receipts, invoices).
The Civil Code allows the buyer to claim compensation for the damage incurred by entering into the contract without knowing about the defect of the horse. Claiming compensation for such damage may follow from submitting a statement to withdraw from the contract. Alternatively, a statement for price reduction due to the revealed defect in the horse.
The buyer can demand, in particular, the reimbursement of the costs of concluding the contract, costs of receiving the horse, transportation, storage, and insurance. The new owner of the animal can also demand reimbursement of the expenses incurred to the extent that they did not benefit from those expenses (See Article 566 § 1 of the Civil Code).
Author: Witold Łukasik – lawyer
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