When these unfortunate events occur, some buyers simply stop paying. To protect the seller, a sales contract can specify that the buyer shall exclusively bear all risk of the horse's loss after the horse is delivered to the buyer or after the buyer signs the contract. Alternatively, Plan Ahead With Insurance. Insurance cannot prevent a horse's illness or demise, but it can protect both parties if something happens to the horse. But It Took a Fortune in Legal Fees to Get This Result Installment sales arrangements can, and do, generate costly legal battles.
Banks are always prepared when the time comes for legal action and often keep a staff of lawyers.
In the horse industry, sellers often have very limited funds to hire a lawyer. A sales contract can specify that the buyer agrees to pay the seller's legal fees in the event of a legal dispute. As this author has learned in her 12 years of practicing law, there is never a guarantee that a court will enforce these provisions, but without them the seller has virtually no chance of recouping the cost of his or her legal bills. Include an interest rate clause in the contract. Banks and credit card companies charge interest.