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It is now recommended industry standard for livery yard owners to have livery contracts in place between themselves and their livery clients. This is whether you offer basic grass livery, or a fully services bespoke full livery package. Not only will this help you keep proper records of your clients, but also help both parties understand the limits of your services, payments and notice periods, and have a clear and concise reference point in the event of any disputes that may arise.
 
A livery contract is not just for the yard owners’ benefit, it is designed to protect and clarify the agreement to the benefit of both parties. Your livery clients should have no genuine reason for not signing an agreement because it protects them too. In theory, anyone accepting your services and making regular payments is already in a verbal contract. 
 
 

Why should you use a livery contract?

 

Make clear what is included and what it costs

A contract should lay out the agreed services and costs for a client’s livery package. The contract should also lay out the payment terms- inclusive of any security deposits or advance payments- and be clear on the due date for payments, as well as any consequences for late payments and debt recovery. For example, retention of the horse or equipment by way of a lien, or a process through the small claims court should be specific clauses on the contract. This ensures your clients are aware of the consequences should they run up debt with you and fulfils your obligation to advise the clients of your intention to take this path if they owe you money. This is particularly important as including this will make it much easier to recoup any debts or losses. 
 

It helps you keep records

A contract gives you a formal record of your clients and the horses in your yard. You should have one contract per horse, not per owner. There is important information about your client and their horse that should be recorded on the form: name, address, passport number, and passport issuing authority at the very minimum.  At the time of receiving a signed contract back from the client, you should also receive their passport (or a copy of their passport if DIY), a copy of their vaccinations and a copy of the horse’s insurance. A Horse Details Form is also a good idea as you can then have concise details about the horse, and the owner's preferred services such as vet, farrier and another ‘responsible person’. Some yard owners will even go so far as requesting copies of ID and proof of address from clients to ensure they have the correct details of the owner in case there are debt issues. All this paperwork can be stored in an individual file for each horse which can then be easily referred to. 
 

No one can deny a notice period

A contract should lay out the terms of notice that must be given if a livery client wishes to leave your yard, so you don’t get left in the lurch with empty stables at short notice. It is generally recommended that a notice period of 30 days is fair for both parties. However, it is worth including a clause stating that in certain circumstances (such as behaviour deemed as gross misconduct- theft, failure to follow rules, negligence etc) a yard owner can give notice with immediate effect. Of course, if mutually agreeable you can also be lenient at your discretion to the normal notice period but it's best to show a fixed notice period in the contract for clarity. To cover a notice period, it is always recommended for yard owners to have clients pay their livery a month in advance and/ or pay an additional security deposit which will ensure the client is paid up to the end of the current month and can be retained in the event of their failure to give adequate notice. 
 

It helps you clarify your yard rules

A contract is a great way to communicate to your clients the terms of their livery and your expectations of them whilst in the yard. It is a great way to make your livery clients aware of any specific rules at your yard (such as biosecurity procedures, no under 16’2, no dogs, etc) and for clients to formally acknowledge and accept these rules by signing the contract. Remember, any rules detailed in a contract are contractual obligations, and failure to adhere to these can warrant notice being given. It is important not to fill a contract with too many minor details. To prevent a livery contract becoming too lengthy, alongside a livery contract you could also provide your clients with a ‘Yard Handbook’. This can be a more detailed and lengthier guide to the yard rules and procedures that your clients can refer to as and when necessary and is much easier to review and update than issuing revised contracts. If this is provided, you should also include a clause in your contract for your client to acknowledge receipt of this. 
 

It helps everyone know where they stand concerning the care of the horse

A good contract will make clear your responsibilities as the yard owner and the responsibilities of the horse owner, as well as protect you or your staff in claims against you that were negligent in your duties of care. Whilst verbal agreements are acceptable, the fact that a livery contract is accepted and signed by both parties can be used in your case in the event of disputes. Your clients will know exactly what provisions and services they are receiving under their chosen livery package. It also clearly lays out the package your client has opted for, and the services included within that package. This can be useful if a client starts requesting additional services within their standard package, is not fulfilling their own yard duties and responsibilities, or claims services are not being fulfilled. 
 

It will help you recoup the cost of damages

A contract can help clarify who is responsible for damage to your yard- if a fence post is broken, the stable door chewed or electric fencing torn down and needs replacing at a cost do you as the yard owner pay for this or do you pass all or part of the costs to the livery whose horse caused the damage? Having this laid out clearly in a contract will save any disputes that may arise, and in turn, save you necessary costs from damage caused by clients or their horses. It is advised that upon arrival of a new client/ horse, as well as the livery fees a security deposit is also paid. As a suggestion, this should be equal to a month’s livery, or at least £100. Then, in the event of any damage to the fencing, stable or other equipment- either during the period of livery or as assessed on departure- a portion of this can be retained to cover the cost of repair. Remember, general wear and tear should not be included, but repeated damage through vices, intentional destruction, or excessive wear and tear can be deducted to enable you to return the facilities to their prior condition.
 

It can protect your profit

For all-inclusive livery packages- such as full livery or schooling livery- it can help you specify the amounts of feed, foliage, exercise and suchlike included within the standard livery fees (i.e kg of hay or bedding per week, amount of hard feed, supplements, amount of exercise etc) which means you can reasonably increase fees and surplus charges for those who require more without being at a loss by not having this clear with your clients. A generalised term of ‘feed included’ may to you mean basic pony nuts and chaff, but to your client could be misinterpreted as specific or multiple branded feeds and supplements, the cost of which can vary wildly from your allowance.  Those who offer ‘ad lib’ often fall foul as they will find on occasions that clients are taking substantially more, thus costing the yard owner more than anticipated. It is also worth including on your contract the ability to review your livery prices annually. So, it’s important to ensure you give detailed information about rations and the types of feed, forage or bedding that are included. 
 

It will help you retain your clients

A good contract should help you retain your clients and have less turnaround of horses in your yard. If all livery clients know what to expect, and they agree to abide by the contract when they arrive there will be fewer disputes and, in the event, that any ‘issues’ arise these could be easily remedied by referring to the contract. It means that from arrival, clients know what services are included, and what they are expected to pay for these every month. The contracts show it all in black and white so there is no excuse that a client didn’t know the cost or what was included. 
 
 

It can help you cover all eventualities

Some important points should also be considered for inclusion in a livery contract. How things will be dealt with following the death of the owner, veterinary emergencies or the death of the horse is important. A livery contract should give you authority to carry out certain tasks based on the welfare of the horse, such as authorising emergency veterinary treatment or euthanisation in the absence of, or failure of being able to contact, the owner. You may also have clients that do not own their horses, and as such a lien for retaining the horse or equipment would go no way to retrieving losses if they leave with a debt. In such circumstances, it's important to consider a contractual relationship with the horse owner too by way of a guarantor for the livery client. Many situations like this are not deemed important to yard owners as it may never have happened. However, the inclusion of clauses like these can ensure if it does happen, there are procedures in place.
 

Its good business

Having a contract will convey your business as organised and professional. It will also ward off any unscrupulous clients who do not want to sign a binding contract and do not intend to pay fees or abide by the rules! The clarification of details within a contract can help you deal swiftly with any problems, recoup any losses and keep good administrative records. These can all help to be a better organised and proactive business. In addition to this, a good contract should enable you to review it annually. This is a good opportunity for you to review your outgoings and livery costs, and whether the packages you offer are working for the business. Costs go up, that’s a fact, as well as inflation so it's no good to keep offering the same livery costs year on year when your own costs are increasing or demand for services may evolve. A clause like this will enable you to review and increase your livery packages and charges annually, and ideally give the client 30 days’ notice of any increases. 
 
And the most obvious reason to have a livery contract with your clients is because it is FREE! There is no need to get a costly solicitor to draw up a contract unless you need to - you are simply writing down what is already covered in a verbal agreement. Numerous template agreements can be found online and amended to your exact needs for your yard, clients and circumstances. Other than the cost of printing out a few sheets of paper and distributing them to your clients the process is easy.
 
It is quick and simple to introduce a livery contract to your clients new and existing. For existing livery clients simply issue them all two copies of the contract, already signed by you, and a cover letter explaining the reasons for the contract. Advise that this simply lays out the existing conditions they agree to on a verbal basis by being your livery client anyway and that this simply introduces this on a more formal basis to protect both parties. They sign both copies, retain one for themselves and return the other one to you along with copies of any documentation that may also be requested (such as passport, vaccination certificate etc). Give a deadline to ensure they are all received within a reasonable time frame and encourage your clients to speak to you if they have any queries or concerns.
 
For new clients, you can show them a copy of the agreement when they view the yard, and ensure that this is signed and the necessary paperwork given to you within 7 days of them arriving in the yard.
 
There are many templates relating to Livery Contracts and connected records on the LiveryList Yard Owner Hub which can be downloaded and amended free of charge in PDF or Word format and can be tailored to your requirements: 
 
 
LiveryList is the UK’s number 1 Livery Yard Directory. As well as offering advertising for livery yards across the UK, it also hosts a whole load of informational and template documents from equestrian associations, authorities and charities across the UK, all collated in one handy place. These can all be viewed and downloaded completely free of charge. 

Cheryl Johns - Livery List
Horsemart Brand Ambassador
Published on 31-07-2019
Cheryl Johns is the founder of LiveryList. Launched in 2011, it has been the top-ranked Livery Yard Directory for many years, and through the Yard Owner Hub, launched in 2020, has developed into a one-of-a-kind resource for yard owners. “As an experienced equestrian and yard manager, with a background in marketing and business management, I create and publish lots of content in relation to yard management and equine welfare, as well as working in partnership with many equestrian associations, charities and publications consulting on yard management and viability. The helps support yard owners to run professional, viable businesses, and helps educate horse owners as to what they should be seeking from a yard in terms of best practice"