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Nomination Agreements - How to avoid disputes

If you are getting your mare covered, ensure that you get a nomination agreement in writing before making any commitment. There are a number of areas of potential dispute between stud and mare owner, and if you do not have written terms and conditions to refer to it is extremely difficult to take action if something goes wrong.

While the bloodstock industry is not exactly renowned for its use of written contracts, this is one area in which there is a tried and tested agreement, that is widely used. The Thoroughbred Breeders Association Standard Terms cover all the key issues which both parties need to be aware of. If disputes do arise, they are solved by arbitration rather than going through the courts.

Not surprisingly perhaps, nomination fees are the biggest source of problems. These may range from as little as, say, £100 for a pony to well over £100,000 for a top thoroughbred stallion. Whatever the amount agreed, both sides need to be quite clear about when it is payable and under what circumstances it can be returned. Terms will vary from one stud to another. Some may require either full or part-payment up front. Others will work on an 'no foal, no fee' basis, or payment on 1 October if the mare is in foal on that date.

Other issues that need to be considered include:

1) The Stallion - how many times must you make the mare available for covering? Obviously, the later the foal and (in the case of Thoroughbreds) the expected date of birth can be very important.

2) Refusal of Service - under certain conditions, the stud/stallion owner may reserve the right to refuse to allow the stallion to cover the mare. Be sure that you are aware what those conditions are - and where you stand in terms of advance-paid fees if that does happen to you.

3) Substitution - if your mare dies before being served, or is unfit for service for some other reason, will you be able to substitute another mare?

4) Death or sale of the mare - where do you stand on fees if your mare dies after being served by the stallion, but before the foal is born. Alternatively, who pays the nomination if she is sold in foal?

5) Disposal of the stallion - what compensation (if any) will be offered if the stallion is sold or otherwise disposed of by the owner before serving the mare? This is particularly relevant to mare owners claiming a 'free return' in successive years.

Many stud/stallion owners will have their own agreements, covering all of the issues raised above. Be sure you understand the terms of the contract. If no agreement is offered, don't be afraid to insist on something in writing.