Live Foal Guarantee and Free Returns
The Bloodhorse Breeders’ Association of Australia’s defined “Free Return” in 1969 to mean “the right of an owner of the mare which has failed to conceive to send the same mare the immediately following season to the same stallion for service, provided the stallion is still owned by the same stud master and is available for stud duties on payment of agistment charges without payment of a further service fee.” (underlining added for emphasis).The expression “Live Foal Guarantee” is sometimes employed as if it means the same thing as “Free Return”: it doesn’t.
A “Free Return” depends on conception whereas a “Live Foal Guarantee” expressly indicates a live foal (ie one that stands and sucks).
What stud would ever promise a right to return a mare for a free service whenever the mare has aborted or delivered a stillborn foal? Not likely! A mare owner might assert an entitlement to a free return when he or she fails to get a live foal, contending that a ‘guarantee’ is just that, a guarantee.
It’s therefore highly recommended that studs adopt “Free Return” in preference to “Live Foal Guarantee”.
The desirability of a stud expressly defining the meaning of “Free Return” and stating any limitations governing its exercise is obvious when complexities are contemplated such as: what if the stallion that has served is no longer owned by the stud or fertile, or dies, or the mare changes hands? It should be made clear that the “Free Return” is not repeated if the mare fails to conceive the second time around.
Invariably with sport horse breeding, where frozen and chilled semen is readily accessible, service fees will be payable in advance.
Competition amongst suppliers of semen for AI has, however, lead many of them to offer “Free Returns” or “Live Foal Guarantees”.
Care must be exercised to discriminate between these expressions and to define the former to avoid unintended consequences.
A well written breeding agreement will address these issues.
January 2008
© Michael Mackinnon, Solicitor
www.horseforce.com.au