Your Horse column – Importance of a loan agreement

Q I’m keen to get a loan agreement drawn up and signed before my friend takes over responsibility for our 12.2hh New Forest pony.

But she’s laughed it off, saying we don’t need to be so formal. Should I press this matter and insist everything’s in writing?

A You are right to be keen to ensure that a loan agreement is drawn up prior to your friend taking over responsibility of your pony. Having a dispute with a friend can often be more difficult than if you were to fall out with a complete stranger. A loan agreement avoids any future misunderstandings (if drawn up properly and thoroughly) that may arise over issues such as payment of veterinary bills, terms of use and payment of insurance.

You are placing a great deal of trust in your friend by allowing her to take over responsibility for your pony. Having the terms of the loan documented in writing will give you legal protection in addition to peace of mind. You will be able to refer to the loan agreement should a dispute arise. The loan agreement should stipulate for example the standard of care that your friend should provide to your pony and the duration of the loan.

The British Horse Society will provide you with a template of a loan agreement that you will be able to adapt to suit your requirements.

PDF Documents: Loan agreement.pdf