Re: RC: stud fees, etc

[CMKSAGEHIL@aol.com]

In a message dated 3/1/00 7:34:11 AM Pacific Standard Time, 
BMcCrary27@aol.com writes:

<< Having bred our mare to an outside stallion, the policy was a booking fee 
 (about 1/3 if I remember correctly), then the balance when the mare was 
 pronounced in foal.  If anything happened during pregnancy or if the foal 
 died or was dead at birth, then I had a re-booking right, but no refund. >>

I originally replied privately to Shelly, but seems there is more interest in 
this topic.

Breeding contracts are extremely variable, but the most important thing is 
that the terms be very specifically spelled out.

The most common form of a "live foal guarantee" contract has a booking fee 
(as Barbara indicates) and this is generally payable up front and is not 
refundable in any circumstance unless the stallion dies or becomes unable to 
breed the mare.  From there, there is a lot of variation.  Some contracts do 
insist that the whole fee be paid up front.  This is more common among 
shipped semen contracts than among live breeding contracts.  The most usual 
form of contract specifies that the balance of the stud fee is due when the 
mare is found to be in foal--usually she is ultrasounded before she leaves 
the breeding farm.  If the mare leaves before being checked in foal, a good 
contract will specify a time frame in which the mare owner MUST have the mare 
checked, and the balance is due upon the results of that check.  A few 
contracts will split the stud fee further, where part of the balance is due 
at that point and the remainder is due upon the arrival of the live foal.  
Again, the main thing is that the terms are explicitly spelled out.

The "live foal" term is often misunderstood--if there is a live foal 
"guarantee" then there is an implied refund if there is no way for the 
original mare to be returned or substituted.  Again, you have to spell out 
any conditions.  Many contracts are pretty explicit that a refund is due ONLY 
if the original mare is deemed unbreedable and the mare owner has no 
substitute mare.  (In reality, I would rather refund the fee (less the 
booking fee) than breed a lesser quality mare or deal with an unreasonable 
mare owner.)  If there is no refund offered at all, then the terms are more 
correctly called "return service."  

The stallion owner "holds all the cards" in terms of having the power to sign 
registration certificates, etc., so there really is not a lot of danger in 
having some part of the balance due at a later time.  I've heard the argument 
that the stallion owner has no control over which mare (or how many mares) 
the semen goes into in shipped semen cases--true, but it's also true even if 
the fee is paid, in this day and age of blood typing and/or DNA testing, it 
would be impossible for the mare owner to register "extra" or "wrong" 
offspring.  So what's the point?

The main thing, though, is to have a GOOD contract that spells out the 
conditions--and if need be, get help from experienced breeders and an 
attorney in writing one.

Heidi