There are pros and cons for both the buyer of the in-utero and also the breeder (seller). I have seen it work both ways in pros and cons for both the good and the not so good. Much will depend on how your contract is written and basically also depend on fate. You cannot expect the breeder to take all the risks as usually in a in-utero contract, there is a substantial price reduction. And again, the buyer cannot be expected to take all the risks either and should end up with a healthy foal who can perform well.
I had one in-utero contract foal born with serious problems. We though we were past the worst when it turned out the foal was septic at 3 weeks of age. The baby ended up a UC Davis for extenisive intervention and died anyway. The owners of that baby had to choose whether to treat the foal, as it was theirs, or whether to let her go. They chose to treat and cost them a lot of money. They did end up with another foal, at no additional cost, which I made sure of!
Another in-utero died from the dam having a uterine bleed (Older mare). In that case I lost both the dam and the baby!!! So the buyer had to pick another dam and wait an additional year!
I’ve also had it work out where everything went perfect and the buyer ended up with their dream foal which they couldn’t have afforded to buy otherwise. They are still absolutely thrilled today.
As a breeder, I choose not to sell in utero anymore as it can draw out the contracts for a very long time. It puts me in a position where I must breed to fullfill an agreement as opposed to just evaluating each year as it presents itself. I would rather take one year at a time and one foal at a time and make choices based on what is best for me and my mares rather than be indebted to someone and being forced to breed to finish obligations.
Right now my mares and I are completely obligation free and I only bred 2 mares this year. It feels very good not to be under obligation to anybody! 