Equine Partnership Agreements
Many equine relationships are actually equine partnerships. 49 states have adopted the Uniform Partnership Act (“UPA”), which states that two or more parties’ intention to carry on a business together for profit is sufficient to create an “equine partnership.” This is regardless of the business making profit, and regardless of anything in writing memorializing their arrangement. The following situations would likely be deemed a partnership.
- Client and trainer agree to purchase a horse to resell. Client paying for the horse and the trainer providing training.
- Stallion owner sells “shares” of a stallion to several other people that entitle them to share in the expenses/profits.
- Two breeders decide to share a broodmare.
- Two individuals purchase a horse together so that they can share in the care, responsibilities and fun of horse ownership.
- Friends decide to go into the boarding business together. One friend buys the boarding facility and the other friend runs it, with the understanding that they will split the profits.
If you find yourself part of an equine partnership, it is important you get protected with an LLC and an Operating Agreement. Many do not realize they are part of a partnership until they try to walk away. Equilaw can help protect you from this situation.
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