A private sale is exactly what the term implies, a transaction between a buyer and seller, and possibly a bloodstock agent or trainer, outside the structure and confines of a public auction setting. A private sale represents one of the cornerstones of capitalism and free enterprise, the idea that parties should be free to contract without interference for what they want. Unless a contract is for an illegal purpose, there are few restrictions on the bargaining between the parties.

When the object of the contract is the sale of a horse, everything is open for negotiation–the identity of the horse, the purchase price, the terms of the sale, warranties, time and method of delivery, and the passing of the risk of loss.

Cash or Credit?

Cash sales are common and quite simple–the parties agree on a price, then money and the horse change hands. The seller and buyer should execute a written bill of sale and/or a purchase agreement every time a horse is sold. There is no standard form for either document, but, at a minimum, the bill of sale and purchase agreement for a cash transaction should include:

1. Identity of the parties, contact information, and a complete description of the horse