Relationship between the parties: in most cases, the contract should be clear that the owner of the bull and the breeder do not form a partnership, joint venture, agency or other formal business association. If, exceptionally, the bull lease contains a provision that the parties sell the bull`s descendants and distribute the proceeds, this is a partnership and, instead of a bull lease, the parties should have a general partnership contract. Bulls are expensive to buy and they are expensive in buying. They work three months a year, then spend the rest of their time hanging out, tearing things apart, and eating expensive food. And these are just a few reasons why a breeder may choose to read a bull. Often, these transactions are made on a handshake; However, written contractual terms can protect both parties, formulate a clear agreement, and provide a roadmap for dispute resolution for maintaining a business relationship. Here are some tips on what should be in a bull rental agreement: Duration: The duration of the rental agreement and the procedures for extending the term should be clear. Insurance: the bull may be insured to cover the risks related to the death, injury or illness of: (a) the bull; (b) other animals caused by the bull or (c) persons caused by the bull. This coverage can be included in the farm owner`s comprehensive liability insurance, in the coverage of specialized and targeted animal insurance or in any other type of commercial insurance. However, the parties to the bull lease should address this issue. Dispute Resolution: Few bull rental agreements deal with dispute resolution and they should – just ask everyone who has been involved in a dispute. Litigation can be lengthy and costly. The parties should consider a mediation clause requiring the parties to a bull lease to use an experienced agricultural mediator to facilitate the resolution of the dispute.
If mediation is hopeless, the parties should consider a binding arbitration clause in accordance with the rules of the American Arbitration Association. Payment terms: the rental of bulls must have clear payment terms. What is the price, the date of payment, the method(s) of payment(s) and the instructions as well as the fine for late payment, including interest. Some bull leases require a bond to ensure the delivery of a healthy bull at the end of the period. risk of loss, injury or illness: who bears the risk of loss, death, injury or illness for: (a) the bull; (b) other animals caused by the bull or (c) persons caused by the bull. Is there a penalty if the bull is injured, with or without the fault of the breeder, to render the bull unusable for other females, including, but not limited to, crippled, unhealthy or injured vaginas, penis or scrotum? As has already been said, how to address the risk of loss, injury or illness while the bull is being transported between farms and ranches? Identification of animals: the rental agreement should clearly indicate to which bulls the lease agreements apply. If the bull is registered with a breeding body, it is recommended to attach the breed registration number and a copy of the registration document in the form of an addendum. Consider fixing the approximate weight and condition of the bull`s body at the time of agreement; In some cases, the owner of the bull will be accompanied by a photo of the bull to illustrate its condition on or around the delivery date. Identify cows: in most cases, bull leases should be clear on the females on which the bull is raised. In some cases, a detailed list of cows, their identification numbers, dates of birth and breed may be attached to the lease.
This can be important for several reasons: (1) to show that the bull is not being revised; (2) to demonstrate whether or not the bull is used in virgin heifers; or 3. The bull is not bred by unauthorized cows belonging to the breeder or third parties. Delivery: How is the bull transported from the property of the owner of the bull to the property of the breeder? Who bears the transport costs and bears the risk of loss, injury or illness of the bull during the delivery time? Are there penalties for late delivery? During the lease, is the bull transported once a month to a bull stud farm? It is also recommended that both parties agree to comply with the legislation on the transport of heavy goods vehicles and trailers and all animal protection laws applicable to the transport of livestock, including the “twenty-eight hour law”. Place of use of bulls: the bull lease should be clear as to where the bull is housed. .