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Court case over £21,000 deposit highlights need for contracts in horse sales


  • A dispute over the return of a deposit when the sale of a pony fell through could have been avoided had a contract been in place, a judge has ruled.

    In June 2022, Theresa Bearman agreed to buy 138cm showjumper Letterkeen Bettyn from Raquel Eldridge-Keenan for £85,000. Mrs Bearman paid a £21,500 deposit stating that she would “pay the rest following a vetting” – and a message from Ms Eldridge-Keenan said that if the pony “breaks a leg etc, I will refund all of it.”

    It was agreed that “Betty” would move to her new home at the end of October, after she jumped at the Horse of the Year Show. But on 12 October, days after the competition, a vet abandoned the pre-purchase examination when it was deemed during the exam that Betty was lame. Mrs Bearman said she would not go ahead with the purchase and asked for her deposit back. But Mrs Eldridge-Keenan said the money had been “a holding deposit”.

    In a court hearing on 20 March 2024, the judge ruled that “the vetting was unsuccessful and Mrs Bearman was entitled to treat the contract as discharged and is entitled to the return of the money she paid by way of deposit”.

    Betty returned to successful competition soon after the vetting, and the judge said her success “before and after the vetting speaks for itself” – but that this was not the issue of the case.

    “This unfortunate and expensive case should never have arisen,” he said, adding that he encouraged buyers and sellers to use standard contracts in private sales.

    “It will not resolve every dispute, but it would go a long way to making the rights and responsibilities clearer for all involved.”

    Jacqui Dark of Equine Law UK, who represented Mrs Bearman, told H&H that her client hopes her case will raise awareness on the importance of contracts.

    “A lot of this was based on trust, and sadly that’s where these things always end in litigation, because you have nothing in writing, you’re relying on text messages, and it just gets really messy,” she said.

    A representative for Mrs Eldridge-Keenan told H&H that Betty has continued to perform and this was the basis “for which we believe we were justified”.

    “Ultimately a judge had a different opinion, and we respect the legal system, but we don’t necessarily agree with the judgement and we don’t think we’re necessarily wrong. The continued performance of the pony is testament of its wellness,” the representative said, but agreed that had there been a contract, there would “have been no question or interpretation”.

    Ms Dark said she has received “more and more” calls about deposit disputes in the past five years – and that these can be avoidable with contracts. She recommends that these set out terms around deposits; whether they are refundable and on what basis, signed by both parties and dates.

    Oonagh Meyer, British Horse Society head of operations for approved centres, said buying a horse can be exciting but to get the most “positive outcome for you, the seller and the horse, it’s important to make careful considerations throughout the purchasing process” – and that owners should have signed receipts for money and consider a sales contract, including arrangements for deposits.

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