A guide to the benefits of horse livery contracts

If you are a livery yard owner, it’s crucial that you have a livery contract in place between you and the users of your yard. In this article, we’ll explain what a livery contract is and their key benefits.

What is a livery contract?

A livery contract is a formal agreement between the owner of a livery yard and the owners that keep their horses at the yard. Livery contracts set out the responsibilities and obligations of both parties.

Content of a livery contract

Well-drafted livery contracts typically contain clauses that cover:

• The scope of the services provided by the livery yard owner
• Costs, payment terms and the penalties for late payment
• Yard rules
• Notice periods
• The insurance obligations of both parties
• Agreements and cost obligations around veterinary care
• Disputes resolution procedures

Benefits of livery contracts

Livery contracts are beneficial to both parties. We’ve set out some of the key benefits below.

Provides clarity

A livery contract should clearly set out the agreed services and costs for a client’s livery package. The contract should also outline the payment terms and due dates for payments. A contract should also address the process in the event of late payment, or debt following departure of the horse from the yard.

Provides a record

A livery contract supports a formal record of the clients and the horses on the yard. It is advisable to have one contract per horse, not per owner, so important and specific information relating to each horse can be recorded.

Outlines notice period

A contract should clearly set out the terms of notice that must be given if a livery client wishes to depart the yard. It is generally recommended that a notice period of 30 days is reasonable for both parties, along with a clause stating that in certain circumstances (such as behaviour deemed as gross misconduct — theft, failure to follow rules, negligence etc) a yard owner can give notice with immediate effect. To cover a notice period, it is advisable for yard owners to have clients pay their livery a month in advance and/ or pay an additional security deposit.

Helps clarify yard rules

A contract is an effective way to clearly communicate to clients the terms of their livery and any specific rules at the yard and for clients to formally acknowledge and accept these rules by signing the contract.

Provides clarity around care of the horse

A well-drafted livery contract will make clear the responsibilities of the yard owner and the responsibilities of the horse owner. By being clear on the package the client has opted for, and the services included within that package, such can be useful where a party starts requesting additional services or not fulfilling their own yard duties and responsibilities, or claiming services are not being fulfilled.

Helps to recover cost of damages

A contract can help clarify who is responsible for damage to the yard and will help mitigate against disputes that may arise.

Helps to protect profit

For all-inclusive livery packages — such as full livery or schooling livery — a clear written agreement can help specify the amounts of feed, foliage, exercise etc. included within the standard livery fees and supports yard owner looking at reasonably increasing fees/charges for those who require above standard terms.

Helps to retain clients

A good contract should help retain clients and have less turnaround of horses. If all livery clients know what to expect, and they agree to abide by the contract when they arrive, there will be fewer disputes and, in the event that any ‘issues’ arise, these could be easily remedied by referring to the contract.

Helps to cover contingencies

Outlining how matters will be handled in the event of e.g. veterinary emergencies or death of the horse, is important. A livery contract can support authority to carry out certain tasks on a basis of welfare for the horse, such as authorising emergency veterinary treatment in the absence of, or failure of being able to reach the horse owner.

Good practice

The clarification of details within a contract can help deal swiftly with any problems, recoup any losses and keep good administrative records. As well as looking more professional, a contract also helps deter unscrupulous parties who do not want to sign a binding contract and do not intend to pay fees or abide by the rules.

Case study — hear from our client

Our client Lisa Smith, equine trainer, eventer and instructor from Valiant Sports Horses, guides us through the importance of having agreements in place for loans, livery and sales agreements.