It might seem like having any generic contract or liability release will cover your needs, but not all of them are legal for equestrian businesses—and the results of using the wrong one can be devastating.
By Kristin Pitzer
Striking a business deal is a tale as old as time, but in a society that’s increasingly litigious, NRHA Professionals need to do more than have a handshake and verbal agreement with their clients. To protect yourself, it’s best to have a contract that lays out the terms for the services to be provided and includes a liability release.
Jordan Willette, an attorney in Phoenix, Arizona, addressed the following five broad problems, presented with fictitious trainers, that you might experience when constructing a contract. Remember that laws vary by state. Consult your own state laws, ideally with an equine attorney, to ensure that you’re covered.
Part 1: The DIY Contract and ‘Inherent Risk’ Signs
Part 2: The Assumptive Contract and the Form Document
Part 3: The Termination Clause
The Assumptive Contract
The situation: Not wanting to seem persnickety, Supposing Susan doesn’t have any of her long-time clients sign contracts or liability releases. After all, they’ve been friends for years, and she assumes they’ll have her back in the event of an accident. Maybe they’ve even verbally told her they won’t pursue legal action if they or their horses are injured while in her care.
The problem: Without a contract to protect her, Susan has opened herself up to the possibility of having to cover any damages herself. It won’t matter what a client has said if Susan isn’t able to prove it legally in writing. No matter how close a friend is, when it comes to money, all bets are off.
The solution: In a perfect world, one might not need to worry about making their friends sign liability releases. In today’s society, though, it’s better to be safe than sorry. If you aren’t using a contract with your clients already, start immediately to ensure that you’re protected from future mishaps.
“It’s a very small community; we all know each other very well, so sometimes the contract is an afterthought,” Willette said. “It’s usually something that you think about down the road, but it really should be something that’s taken care of first and foremost once you engage in business.”
It may seem awkward to have friends or long-time clients sign a contract saying they won’t sue in the event of an injury or death, but it’s necessary to protect yourself from becoming involved in a lawsuit that could ultimately result in the death of the relationship, anyway.
“I know that’s a personal issue because people don’t want to seem like they’re trying too hard to protect themselves,” Willette said. “It’s a delicate line, but you want to ensure that you’re protected legally and financially.”
The Form Document
The situation: Hardworking Harry uses contracts with liability releases in his program. He goes online and searches for different types of form documents, selecting the ones that seems closest to what he needs for his business. He asks his clients to fill it out exactly as it reads, without adding on any additional terms.
The problem: If Harry did his due diligence in selecting the correct form to fill out according to his state, he’s off to a good start. Without adding specific terms to the contract, though, he can’t rely on it to fully protect him. A generic contract may not cover every situation that arises in his business.
The solution: When you decide to start using contracts for your business, start by visiting an attorney, Willette recommended. Find someone who’s familiar with equine law and the types of situations that can happen while working with horses. That way, the attorney can review the contract to be sure it’ll cover any situation that might arise.
“Many contracts are form documents, and we all use them,” Willette said. “Always include a blank space where you can write in specific services that are being provided. Always include a liability release and a clear identification of what’s being released from liability. Be sure that exculpatory language, as required by your state, is enforceable.”
If you’re not sure where to find an equine law attorney, Willette suggested going to an equine insurance carrier, which may recommend an attorney or point you toward certain contracts and liability releases.
“There are a lot of different avenues you can pursue,” Willette said. “It’s important to have a contract and liability release reviewed by an equine attorney.”
Read the rest of this article at the links above.
