Agreement or Contract to Sell Pedigreed Animal with Security Agreement and Bill of Sale

Agreement or Contract to Sell Pedigreed Animal with Security Agreement and Bill of Sale

Agreement made on the day of , 20, between

(Seller’s Name) of , referred to herein as Seller, and

(Buyer’s Name), of , referred to herein as Buyer.

In consideration of the mutual covenants and promises set forth in this Agreement, Seller and Buyer agree as follows:

1. Sale of Animal. Seller agrees to sell and Buyer agrees to buy a (specify type of animal, e.g., horse) known as (name of animal) and more fully described as follows:

(description of animal).

2. Warranties. Seller warrants that he is the owner of and has good and lawful authority to sell the (specify type of animal, e.g., horse) known as (name of animal), whose bloodline is set forth in Exhibit A attached hereto and made a part hereof by reference.

3. Sales Price The sale price is $, payable as follows:

A. $ upon the execution of this Agreement, the receipt of which is acknowledged;

B. $ on , with interest at % per annum on the unpaid balance from the date of this Agreement; and

C. $ on , with interest at % per annum on the unpaid balance from until paid.

4. Inspection. Buyer acknowledges that he and his designated veterinarian have examined , and that Buyer is satisfied that the animal is in a healthy and sound condition.

5. Services Reserved

A. Seller reserves the right to have (e.g., three) (e.g., mares) bred to (name of animal) each year without any service fee.

B. Seller further reserves the right to have an additional (e.g., three) (e.g., mares) bred each year at a service fee of $ per (e.g., mare).

C. These services are reserved for a minimum period of (e.g., 10) years or so long as Buyer should own (name of animal), whichever is longer.

D. In case any (e.g., mare) served not being in foal, she will be served next season without any fee.

E. Seller will be responsible for the care of the (e.g., mares) including any groom fees while the (e.g., mares) are at the premises of the Buyer.

6. Insurance

A. Buyer agrees to obtain an animal mortality insurance policy upon (name of animal) for a value of at least $.

B. The insurance policy shall designate that the insurance proceeds shall be payable to Seller and Buyer as their respective interests may appear.

7. Security Interest. Buyer acknowledges that by this Agreement, Seller retains a security interest in his favor in (name of animal), under the provisions of Article 9 of the Uniform Commercial Code of the state of .

8. Breach of Agreement

A. In the event of breach of this Agreement, Buyer agrees to pay all expenses of retaking, holding, preparing for sale, selling, and reasonable attorney's fees and legal expenses as may be allowed by law and incurred by the Seller in enforcing his rights under this Agreement.

B. The rights and remedies conveyed upon Seller shall be in addition to and not in substitution of or in derogation of the rights and remedies conferred by the Uniform Commercial Code of the State of and other applicable laws.

9. Binding Effect of Agreement. This Agreement shall inure to the benefit of and be binding upon, the heirs, administrators and assigns of each of the parties.

10. BILL OF SALE. By this instrument, Seller sells, assigns, and conveys all his right, title and interest in the (specify type of animal, e.g., horse) known as (name of animal), reserving for himself a purchase money security interest as set forth in Paragraph 7 of this Agreement.

11. Severability. The invalidity of any portion of this Agreement will not and shall not be deemed to affect the validity of any other provision. If any provision of this Agreement is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision.

12. No Waiver. The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.

13. Governing Law. This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of (name of state).

14. Notices. Unless provided herein to the contrary, any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement.

15. Attorney’s Fees. In the event that any lawsuit is filed in relation to this Agreement, the unsuccessful party in the action shall pay to the successful party, in addition to all the sums that either party may be called on to pay, a reasonable sum for the successful party's attorney fees.

16. Mandatory Arbitration. Notwithstanding the foregoing, and anything herein to the contrary, any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

17. Entire Agreement. This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement.

18. Modification of Agreement. Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party.

19. Assignment of Rights. The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party.

20. Counterparts

This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument.

21. Compliance with Laws

In performing under this Agreement, all applicable governmental laws, regulations, orders, and other rules of duly-constituted authority will be followed and complied with in all respects by both parties.

WITNESS my signature as of the day and date first above stated.

Acknowledgment Form may vary by state.

State of

County of

Personally appeared before me, the undersigned authority in and for the said County and State, on this (date), within my jurisdiction, the within-named , who acknowledged that he executed the above and foregoing instrument.

My Commission Expires: