Horse seller – Are you selling privately or as a business?

Regardless of whether you are a breeder or a rider, it happens that you have to sell a horse. In many cases, there is no doubt whether you are a private seller or a commercial seller. However, there is a relatively large gray area where it is actually debatable whether you are a private or commercial seller.

It is not entirely unimportant whether you are a private seller or a commercial seller. As a private seller, you have the opportunity to largely agree on what you want with the buyer, and to draft the contract with the agreements that you and the buyer can agree on, regardless of what the Danish Sales Act otherwise says. As a commercial seller, if the buyer is a consumer, you do not have the opportunity to deviate from the consumer protection provisions of the Danish Sales Act. As a commercial seller, you have little opportunity to agree on what you want with the buyer, as agreements that are contrary to the consumer provisions of the Danish Sales Act will be invalid if the case is tried in court.

If you, as a hobby rider, are selling your horse because you have become pregnant, are going to start studying or have lost interest, there is no doubt that you are a private seller. If, on the other hand, as a hobby rider you have repeatedly bought a horse, ridden it for a while, then sold it again and bought a new one, then it starts to look like a hobby business, and you are entering the grey area. Especially if the horses are predominantly sold at a higher price than they were purchased, this will point towards a hobby business. In this context, it is relatively unimportant that a real profit may not be achieved, as it is only the seller's intention with his business that comes into play, i.e. was the horse bought/bred with a view to resale? If the answer is yes, you are most likely to be considered a commercial seller.

If you have set up a business with a CVR number within stud farming or horse sales, there is of course no doubt that you are a commercial seller.

If you are about to sell your horse and are in doubt whether you are to be considered a private or professional seller, you can use this method: "What will the buyer's experience of the transaction be like?" If the buyer gets the experience of trading with a professional/semi-professional, this will weigh in favor of you being considered a professional seller.

The following parameters will be considered when assessing the buyer's experience of the transaction:

• Does the seller have a stud farm name or “stable name”? In general, does the seller have an “official name”?
• Does the seller have a website that states that the seller has horses for sale?
• Does the seller have a Facebook page that includes sale horses?
• If the horse has a for sale advertisement, what is said in the text is also important. Phrases such as: "other horses for sale", "siblings sold abroad", etc. can contribute to the buyer perceiving the seller as a businessman.
• The seller's appearance and statements during the showing also have an impact on the buyer's perception of the seller. If the seller talks in a big and flashy way about all the horses the seller has sold to prominent names and abroad, this will reinforce the buyer's perception that the seller is a businessman.
• In the final phase of the transaction, where agreements regarding veterinary checks and the contract must be concluded, it is crucial how the seller acts. If the seller comes up with his own standard contract, and also tells the buyer how it “usually” happens when selling horses, this gives the buyer a clear impression that the seller is “used” to selling horses, which suggests that the seller is a professional seller.

In court, it will always be a concrete assessment when the judge has to decide whether the seller is a private or commercial seller, if after the transaction disagreements arise between the buyer and seller. The buyer's justified perception of the process will be given high weight, but also other factors such as the number of broodmares (more than 4 broodmares clearly points towards commercial), how often and how many horses are sold and the continuity of horses sold over a longer period of years.

If you are in doubt whether you are a private or commercial horse seller, then contact us for a chat.

Also read our article “Horse Seller – The Mediation Rule", where the topic is further elaborated.