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We leased a broodmare but contract was never signed. We paid…

We leased a broodmare...

We leased a broodmare but contract was never signed. We paid for the up keep of horse and service fee for foal and expenses for foal. We registered the foal in our name with racing aust. The deal was when foal was sold to split profit 50%. We sold foal at a loss. Owner of broadmare wants half the sale price. Even though they did pay anything and no contract was signed. Auction house now will not pay us until it is sorted even though the the foal is under our name. Each time the owner of the mare has a different story of ghe agreement.

Lawyer's Assistant: What state/territory are you in? It matters because laws vary by location.

Nsw

Lawyer's Assistant: What steps have you taken so far?

Onlybspoken to the auction house. Theynhave tge id card which is reg in our name.

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Answered in 5 minutes by:
4/26/2018
John Melis
John Melis, Lawyer
Category: Australia Law
Satisfied Customers: 3,552
Experience: Principal Lawyer at Legal AU Pty Ltd
Verified

Hi, my name is***** solicitor in Melbourne. Thank you for using Just Answer, and I will answer your question today, and ask various questions to narrow the issues in your post raised.

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Customer reply replied 3 months ago
Ok

do you have a copy of the unsigned contract ?

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What amount does the auction house seek ?

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Customer reply replied 3 months ago
But they did not sign it. And we did not sign. We gave it to the horse trainer to give to them snd he did not also gave to their solicitor a couple of months ago and he did not get them to sign it and send back for our signature. We have now contacted hwr solicitor and with a copy of the upkeep of mare approx $17,000 cost of foal approx $45,000 sold foal for $40,000. They have not paid for anything. She told her solicitor the first story that the first foal was ours. The deal was we pay for everything sell the foal if there was a profit split it 50%

Thank you.

Please allow me a few minutes as I am drafting a reply for you.

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On the facts that you have raised, you had a lease for a broodmare. There was no formal contract signed. You paid for the update of the mare and foal.

As you maintained the mare and foal, this creates an implied contract of lease under the current lease terms that were presented to you.

You sold the Foal at a loss.

The owner of the broodmare wants half the sale price of the foal sold.

The auction house refuses to pay.

The auction house is correct in their position by not paying the monies, because until the dispute between you and the owner of the mare is soughed out, and if the auction house pays the money out, they can be sued by either party.

The issue you are facing in this situation is costs directly related to the foal:

The foal was sold at a loss of $5k.

On this basis you do not need to pay the owner any money.

However, the issue is the unsigned lease.

Is there a possibility I can talk with you on the phone ?

Would you like to consider this option.

You have a legal right to protect your interests in this important situation.

If you need any further information let me know and I will be pleased to assist.

You can come back to this post any time to ask questions and there will be no further charges to you.

Don’t forget to rate me 5 stars as this supports me helping the community, and your important questions.

Have I answered your question today ?

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Customer reply replied 3 months ago
They are after half the sale price. Under Inglis terms and conditions we had to supply the Id card showing who owns the foal this is reg with racing aust. As the vendor we have supplied Inglis with everything that is required. The letter arrived after the sale. Where she also requested half the proceeds and the return of the horse to be sent to a trainer to be broken in and trained. This horse is 6months old. If they stop the proceeds does that mean anybody can claim any horse that went through the I glis sale

The legal issue that stands is the ownership of the foal.

The lease that is implied will determine the ownership in part.

Generally, where you lease cattle or horses and there are off spring, the lease documentation needs to state that the off spring becomes the owner of the lessee and not the lessor.

If the lease is silent in this matter, then the issue will become one of extrinsic material external to the lease to determine the owner of the off spring, in your case the foal.

Does this answer your important question today ?

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Customer reply replied 3 months ago
thsnk you. But one last question does it mean that anyone even can claim a % of sale proceeds from Inglis auction by just writing s letter to Inglis.

On the one if applicable is the owner of the mare, no other party can raise a claim.

John Melis
John Melis, Lawyer
Category: Australia Law
Satisfied Customers: 3,552
Experience: Principal Lawyer at Legal AU Pty Ltd
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