Q: We live in an area where a lot of cattle and horses are raised and sold. Often the sales are to other farmers. Recently we became aware of a case where a small claims judge ordered a neighbour to refund the purchase price of a horse and take back the horse. This occurred a year after the sale. What is the law that allows a buyer to get a refund a year after the sale?
A: Without knowing details of the contract between buyer and seller, we can only speculate.
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If there is no written contract, the terms could still be implied by looking at the conduct of the parties, any discussions they had and local customs that are followed when animals are bought and sold. If the matter goes to court and there is no written contract, the judge will determine the terms of the sale. As a matter of good practice, I strongly advise that people note the terms of any deal in writing. Even a handwritten document is better than no contract.
There are several possible scenarios to the situation you describe. First, the parties could have agreed that the horse could be returned within the first year at the sole option of the buyer for no reason at all.
The court could find that there were warranties, either expressed or implied, regarding the animal. This could include that the animal is capable of bearing or fathering offspring, that it is in good health or that it is an offspring of certain lineage.
If the warranty is breached, the next question to determine is the rights of the parties. If the contract does not deal with what happens when the warranty is breached, a judge will have to decide whether the breach renders the contract void or merely entitles the buyer to damages or a return of part of the purchase price.
You indicate that this occurred a year after the sale. However, this does not tell us when the buyer first made a complaint and began the small claims action. It could well be that the action was started two or three months after the sale. Small claims courts are designed to work quickly. However, as in other courts, the parties can ask for adjournments to prepare their case. In some provinces, the judge or court officer will first try and mediate the dispute. As well, in some centres the courts are busy and one may have to wait several months to get a hearing. Perhaps, even before they went to court, the buyer and seller spent several months attempting a settlement.
Don Purich is a former practising lawyer who is now involved in publishing, teaching and writing about legal issues. His columns are intended as general advice only. Individuals are encouraged to seek other opinions and/or personal counsel when dealing with legal matters.
