Equestrian horse owners and businesses are being urged to exercise caution when negotiating horse sales or equestrian services via messaging platforms, following a recent High Court ruling that highlighted the risks of “unintended” contracts.
In the case of Jaevee Homes Ltd v Fincham, parties discussing a construction project over WhatsApp were found to have formed a legally binding contract despite never signing a formal written agreement. The ruling demonstrates that even informal electronic communications can include the essential elements of a contract, such as offer, acceptance, and terms, which can later be enforced.
The case sets an important precedent for the equestrian world, where it is common for buyers and sellers to negotiate prices, exchange photos, and arrange viewings or vettings via WhatsApp, Facebook Messenger, or text. Informal discussions can inadvertently create binding contracts, and terms may be implied by law even if they were not explicitly agreed. Conversely, key terms parties may have wanted to include could be omitted, leaving them exposed to risk.
This case also highlights a broader risk for all equestrian businesses. Any discussions conducted via messaging platforms – which are popular in the equine world- could potentially be interpreted as forming contractual terms, particularly when there is no formal written agreement in place. This is especially relevant for arrangements such as livery services, training, or other equine-related services, where informal agreements over text, WhatsApp, or social media could unintentionally create binding obligations between parties.
Talking to Horse & Hound, Hannah Bradley of Aria Grace Equine Law said a lot of legal cases arise in the equestrian world based on contracts formed via electronic communication, an dhave the following advice
“Aside from the risk of creating a binding contract when you don’t intend to, the further problem is, you are not necessarily confined to what you think you have agreed. There are many terms that might be implied by statutory or common law and they can all become part of the contract, which is a bit of an uncontrolled beast. You can also fail to include terms which you might have wanted to. Whereas if you have a formal written contract you can generally consider and regulate what the terms are in a bit more detail.”
To reduce the risk of unintended agreements, preliminary discussions should be clearly stated as non-binding, using phrases such as “subject to signed contract” or “pending formal agreement.” For more complex or high-value sales, independent legal advice is recommended. Once negotiations are complete, it is essential to move to a formal written contract that sets out all the key terms, including warranties, deposits, and conditions for deposit return. A properly drafted contract ensures clarity and reduces the likelihood of disputes.
It is strongly recommended to have formal contracts in place for any equestrian business arrangements, whether for livery services, horse sales, or other services. Ensure that these agreements are signed by all parties, properly distributed, and regularly updated to reflect any changes in terms or ongoing arrangements, such as livery contracts.
While messaging apps provide convenience, formal written agreements remain the safest way to protect against accidental commitments or misunderstandings.