Contract for stallion loan

[Ozalynda]

I am looking for a little help brainstorming a contract for the loan of a stallion.

I have a two year old colt who is breeding quality. I also have his sire. I am competing on the sire, but do not have the bandwidth to also promote the colt as he should be.

I have the opportunity to send him on more or less permanent loan to a situation where he will be used in performance and promoted but I retain ownership. Now I need to work out the nuts and bolts of the arrangement so it is fair to everyone.
Please comment on the following aspects with the consideration that the colt will functionally belong to the new “owner” while I retain the breeding rights, aside from his own mares who he will be allowed to cover at no expense:

Expense of daily upkeep
Vet expenses
Mortality insurance
Health insurance
Income from outside breedings (I assume he will charge mare board)
Transport expenses (2200 km/1350 miles) from A to B
Transport expenses from B to A in the event that he returns home
any other details that should be covered in a contract...

Thanks so much for your help. I know the value of a good contract.

[clanter]

Personal liability coverage for you? Since the horse would be in your name if any one was hurt/injured by the horse you could be in the liability stream

[exvet]

I recommend detailing who makes what decisions and where full ownership remains should your colt become incapacitated or unable to breed for any reason. Put in writing who and how his breeding book will be handled and managed going forward from test breedings to breeding during competition season as well as number of mares, etc. Address the handling and cost of storage of frozen straws if you decide to collect and freeze. Marketing costs should also be addressed and detailed. Can the other party choose to lease the stallion out for riding/competition purposes? Those are just a few things that come to mind.

[CobJockey]

Are you me? I did exactly this with a two year old colt a couple of years ago, and it worked out wonderfully for both myself and the leaser. In addition to everything stated above, my contract stated she was not allowed to collect and keep (or sell) any frozen.

[Bluey]

Consider future amendments to contract, length and reasons and ways to rescind contract if necessary.

If the horse is part of a registry, JC, AQHA, Arabian, etc. also ask fhe registry for ideas for contracts and their registry’s requirements, including who all will sign to register any offspring, etc.

[Railbird]

Frankly, if you are retaining ownership, I would expect to be paying standard training board and ownership costs. At least here in the US, it’s challenging to find a good trainer to develop a young stallion and anyone saying they will do it for a discount would make me suspicious. If you want the value of the other party’s breeding access to be reflected, then I would just charge them standard stud fees and deduct it from their standard training board.

[Myta]

Is the prospective leasee a professional trainer that would be handling him like a professional trainer or someone who is looking at him from a buyer prospective without the upfront money? Is the person an amateur?

I have a friend who has leased a stallion in what sounds to be a similar situation. I don’t know how long she’s had him, but I’d venture at least 10 years, she competes in dressage with him, maybe up to PSG, local shows only, but does rated. I believe she is an amateur, so she can’t get paid for showing him, she pays her own entry fees, and gets to enjoy a horse that would be out of her purchase budget. I only know of two foals she’s had from him, she has kept both. IMO, it’s not really a situation where she is campaigning and marketing the stallion so much as providing care for the horse while the original owner has not had to relinquish all control. Very, very different situation than sending a stallion to a professional trainer who is training and marketing the horse for you, taking on a lot of stallion books for outside mares, but with the benefit of breeding his own mares to the horse. The details in your contract would be very different depending on the type of situation you are looking at.

Either way, I would say income from standing the horse (mare care and collection fees) is completely theirs, as it is solely to cover the space, time, and feed for the mare on their property, or time and money transporting the stallion to the vet to collect. I’ve never seen either as an income, just a cost being passed on to the mare’s owner. Depending on the history and reputation of the person involved, you may want to define what qualifies as “own mare” as an unscrupulous person can easily bend that.

[Ozalynda]

Thanks everyone for your input. The situation is a bit unique. The colt is an Akhal Teke and the trainer is Miron Bococi, who will eventually use the stallion in his liberty shows. In this way, his training is specific to Miron’s uses, not as would be the situation with a dressage trainer who puts standard training into a horse that could then be utilized by the owner or a new buyer. Miron would have him for as long as he wishes.

Miron already has a broodmare of mine on permanent loan.

You can see a video of Miron Bococi here: Miron Bococi Horse Show

https://www.youtube.com/shorts/jxYoZ2KK0Ak