Conditions of sales

 

 

These Conditions of Sale have been translated and are deemed accurate. Nevertheless the sale is ruled by the French version of the Conditions of Sale and if a difference is to be found between the French and the English translation, the French version will be the one that rules.

 

Article 1 – Conditions of Sales

 

It is assumed that all buyers and sellers are familiar with, and have accepted these conditions of sale. These conditions shall apply to all transactions performed by ARQANA on the website www.arqanaonline.com. These conditions are in accordance with the law of July 10th 2000 and the articles 2001-650, 651, 652 of 19/7/2001, which deal with the voluntary sale by public auction of movable property.

 

ARQANA will act on behalf of the vendors, who agree to give responsibility to ARQANA for billing and collecting proceeds. These Conditions of Sales shall apply in all their prescriptions, provided they don’t come in contradiction with those announced before the sale and recorded in the minutes.

 

Under the terms of the law of July 10th 2000, any private sale of a horse that has been offered for sale by auction by ARQANA, bought back by the vendor and subject to a subsequent private transaction with the concourse of ARQANA, will be considered as a sale by public auction for all instances where these Conditions apply.

 

The responsibility of ARQANA towards buyers and sellers is limited to the cases defined in the present Conditions of Sales, and accepted contractually by buyers and sellers. In general, under no circumstances shall inobservance of the Conditions of Sale shall engage ARQANA’s responsibility towards buyers and third parties.

 

 

Article 2 – Auctions on Arqanaonline.com

 

In accordance with the law, bids shall be taken and displayed in Euros.

 

I – REGISTRATION FOR A SALE

Only the persons who have been approved with ARQANA shall be entitled to bid. To this end, they must register on the website by creating a personal account and follow the instructions to file a registration request. After receiving their personal access code, they will be able to log on securely to the online bidding platform.

 

II – BIDDING

Any person wishing to place bids must log on to his/her personal account on arqanaonline.com and follow the instructed procedure to confirm his/her bid by entering the personal access code provided. Every validated bid is confirmed by an email sent to the address provided by the bidder. Every overbid is also communicated to the underbidder in the same way.

 

III – CANCELLATION

A cancellation option is available during 2 (two) minutes following the validation of a bid, and can be accessed on the bidding page or via a link included in the email sent to the bidder.

 

IV – END OF A SALE AND EXTRA-TIME RULE

The end of a sale is scheduled at a precise time, indicated on the website by a countdown showing the remaining time to place a bid. The Extra Time rule guarantees a minimum period of 20 (twenty) minutes to place an overbid, therefore pushing back the end of the sale by the same amount.

 

V – SALE OUTCOME:

An email will inform all bidders from the outcome of the sale. The highest bidder at the end of the sale shall be deemed the purchaser and become the owner of the horse, of which he/she will take delivery after ARQANA has produced and transferred to him/her a voucher allowing the horse to leave the premises where it has been stabled.

 

A veterinary surgeon mandated by Arqana will produce a clinical examination certificate prior to the beginning of the sale, and a second as close as possible to the end of the bidding process.

 

ARQANA reserves the right to refuse the bids of anyone who does not offer proof of established solvency and in particular will refuse the bids of those who have not settled payment of previous purchases made at ARQANA or with other sales organisations.

 

Failing immediate payment, any unpaid lot may be reoffered for sale on grounds of irresponsible bidding, without any formal summons or legal procedure, at the irresponsible bidder’s own risks. The bidder shall be bound to settle the difference between the original purchase price and the price attained when the horse was re-offered but will have no claim to any surplus, which will be passed on to the original vendor. ARQANA shall have sole responsibility for determining any case of irresponsible bidding.

 

In case of default from the buyer, ARQANA shall auction the horse once again and the potential price difference shall not be claimed.

 

Article 3Information to be supplied by the seller

 

The seller must provide in writing any public announcements to be made at his responsibility before the sale. ARQANA shall be solely responsible for the conformity of the declarations communicated by the seller with those that are passed on to the public but does not accept responsibility for the sincerity or accuracy of the seller’s statements, particularly with reference to VAT, description of the horses, of their pedigree, race record, entries, earnings, stable vices, date of last service date etc.

 

Thus the seller must indicate in writing and before the sale all errors or omissions appearing on the pedigree displayed on arqanaonline.com so that such errors or omissions can be rectified and recorded.

 

 

Article 4Veterinary file

 

Before the start of the sale, buyers are given the possibility, with the consent of sellers, to have the veterinary file of the horses offered for sale consulted by the veterinary surgeon of their choice and at their own expenses, and if appropriate to have the horse clinically examined, within the limits of the protocol designed for such purposes by the Association of Equine Veterinarians.

 

Before any consultation of a veterinary file, the seller must establish a consultation form to be filled in and signed by the potential purchaser or his/her veterinarian, wherein they commit themselves to the obligation of confidentiality of the information they will be led to collect.

 

The arqanaonline.com website mentions the content of the veterinary file for each horse offered for sale. The file shall be available for consultation on the premises where the horse is stabled as well as via a vet box, during the entire inspection period. Veterinary surgeons who file a request (on arqanaonline.com) will receive an access code from ARQANA to log on to the horse’s digital file.

 

 

Article 5Documents to be provided by the seller

 

All horses entered by any vendor shall be accompanied by all documents required by ARQANA: passport, ownership card (for French horses), sanitary certificates (depending on the horse’s category), as well as covering certificate for in foal mares, irrespective of the nature of the covering contract.

 

Before each sale on arqanaonline.com, ARQANA shall specify the list of documents to be provided by the seller. Sellers must lodge such documents with ARQANA before the sale. Liability may be claimed against the seller, should such documents not have been submitted in due course, without prejudice to ARQANA’s right to refuse to offer the animal for sale on arqanaonline.com. In no event, should the sale of the animal take place, shall ARQANA be held responsible under any circumstance for the absence of the said documents.

Payment to the seller shall only be made once ARQANA is in possession of all the required documents.

 

 

Article 6 – Seller’s warranties

 

Horses sold on arqanaonline.com are subject to ordinary legal warranties.

 

I. Conventional warranties:

 

The buyer may seek the resolution of a sale and return of a lot to the vendor in the case of stable vices, abnormal inspiratory sounds or locomotor Ataxia according to the below conditions, and of which he would not have been aware before the sale.

 

1- Stable vices:

 

Stable vices such as crib-biting, wind-sucking, habitual weaving and box-walking shall be announced on arqanaonline.com, failing which the buyer may seek the resolution of the sale.

 

Therefore, any horse:

(a) which is a Wind-sucker (i.e. habitually gulps or swallows air whether in association with grasping fixed objects with incisor teeth or not) or a Crib-biter is returnable unless described without qualification as a Wind-sucker or Crib-biter, in which event the horse is not returnable.

 

(b) which has been operated on for the correction of Wind-sucking as defined above, including Cribbiting, is returnable unless so described.

 

(c) which is an habitual Weaver (i.e. habitually swings its head and neck to and fro and transfers weight from one forelimb to the other alternately) or

 

(d) which is an habitual Boxwalker (i.e. habitually walks either backwards and forwards or round and round the box repeatedly in an aimless manner), is returnable unless so described.

 

2 - Abnormal inspiratory sounds:

 

Any Lot described as a Yearling and any Lot described as a “Store”:

(a) which is a Whistler and/or a Roarer as hereinafter defined, or

 

(b) which has been tubed or otherwise operated upon for the correction of Whistling and/or Roaring (operations to treat the displacement of the soft palate, including the operations tie forward, cautery of the soft palate, trimming of the soft palate and myectomy are not operations for the correction of Whistling and/or Roaring within the meaning of this sub-condition), or

 

(c) which makes an abnormal inspiratory sound when actively exercised and which has (i) rostral displacement of the palatopharyngeal arch (fourth branchial arch defect); or (ii) chondroma or severe arytenoid chondritis; or (iii) cleft palate; or (iv) epiglottic entrapment; or (v) sub-epiglottic cyst, is returnable unless so described and, if so described, or described as being “heard to make a noise” without qualification the Lot is not returnable under sub-paragraphs (a), (b) or (c) above.

 

In the case of a Lot to which this sub-condition applies, a Whistler and/or Roarer is a Lot which can be heard to make a characteristic abnormal inspiratory sound when actively exercised and which has Laryngeal Hemiplegia (Recurrent Laryngeal Neuropathy) when examined with the endoscope.

 

Any Lot described as a Horse in Training:

(a) which is a Whistler and/or Roarer as hereinafter defined, is returnable unless so described or described as being “heard to make a noise” without qualification. In the case of a Horse in Training, a Whistler and/or Roarer is a Lot which can be heard to make a characteristic abnormal inspiratory sound when actively exercised (ridden where possible) and which has Laryngeal Hemiplegia (Recurrent Laryngeal Neuropathy) when examined with the endoscope.

 

(b) which has been tubed or otherwise operated upon for the correction of Whistling and/or Roaring, is returnable unless so described and, if so described, the Lot is not returnable under either sub-condition 6-2 (a) or (b). Operations to treat the displacement of the soft palate, including the operations tie forward, cautery of the soft palate, trimming of the soft palate and myectomy are not operations for the correction of Whistling and/or Roaring within the meaning of this sub-condition.

 

3- Locomotor Ataxia

 

Any Lot that suffers from locomotor ataxia (or cervical spondylomyelopathy or Wobbler syndrom) is returnable under the present condition.

 

II. Specific return procedure applying to the three aforementioned resolution cases:

 

In case of stable vice or abnormal inspiratory sound, the purchaser may seek the resolution of the sale by sending to ARQANA, either by post or email, a notice in writing before 5.00 p.m. on the 7th day after the end of the online sale, along with a veterinary certificate.

 

The vendor shall be kept informed of the claim and of the report made by the veterinary surgeon appointed by ARQANA.

 

Upon the vendor’s request, communicated to ARQANA in writing within 4 days from the transmission of the report made by the purchaser’s veterinary surgeon, a joint amicable expert evaluation may be ordered by a veterinary surgeon appointed by ARQANA, each party being allowed to be assisted by its own veterinary surgeon.

 

Failing agreement between the parties following this second opinion, the purchaser may bring the case before the court according to regular legal remedies, within 30 days from the reception of the amicable evaluation report.

 

III. Redhibitory Vices specified in the French Rural Code.

 

The vendor shall guarantee the buyer against the vices specified in section R213-1 of the French Rural Code and that would not have been disclosed by him before the sale.

 

Any action taken by the buyer in respect of the said redhibitory vices shall be taken in accordance with the provisions of section 213 et seq. of the French Rural Code, i.e. within 10 days from the horse’s delivery (not counting that day), except for periodical inflammation and infectious anaemia for which such time limit is 30 days not including the day of the horse’s delivery.

 

All deadlines shall expire on the last day at 12:00 pm. Whenever a deadline expires on a Saturday, a Sunday or a Bank Holiday, it shall be extended to the first working day that follows. Within the stated period of time, failing which his application would be turned down, the buyer must submit to the Judge of the Court relevant to the horse’s location a request seeking the appointment of experts commissioned to draw up a report on the examination of the animal.

 

Within the same period of time, the buyer must take one of the actions available in case of a redhibitory vice as provided by articles L. 213-1 to L. 213-9 of the French Rural Code.

 

Within the same period of time, the buyer must inform ARQANA (via registered mail) of the submission of his application to the Judge, enclosing a veterinary certificate detailing the vice concerned.

 

IV. Veterinary File and Arbitration

 

The veterinary file for every horse offered for sale on arqanaonline.com shall be compiled by the vendor with veterinary advice. It may contain X-rays (taken according to the international protocol or that of the Association of Equine Veterinarians), endoscopic videos, as well as any other documents that the vendor may consider useful to bring to the awareness of veterinarians working on behalf of buyers.

 

Arqanaonline.com shall indicate the content of the veterinary file for each lot offered for sale. The file will be available for consultation on the premises where the horse is stabled during the inspection period as well as via a vet box. Veterinary surgeons who file a request (on arqanaonline.com) will receive an access code from ARQANA to log on to the horse’s digital file.

 

Before any consultation of a veterinary file, the purchaser or his/her veterinarian must fill in and sign a consultation form, wherein they commit themselves to the obligation of confidentiality of the information they will be led to collect.

 

ARQANA shall not be responsible for any mistake in, or lack of legibility of, the veterinary files, not for the malfunctioning of the material available in the reading rooms. Veterinary surgeons acting on behalf of a purchaser shall consult the veterinary file and, when appropriate, carry out complementary examinations, under their own responsibility and at their own expense, within the limits of the protocol designed for such purposes by the Association of Equine Veterinarians.

 

In the event of an accident caused by or to a horse being examined by a potential purchaser or his/her veterinary surgeon, they will be sole responsible and shall bear the direct and indirect consequences. Vendors and buyers hereby commit not to claim ARQANA’s responsibility in any circumstances.

 

Any purchaser who, by him/herself or via his/her veterinary surgeon mandated for this purpose, will have or could have had access to the information available where the horse is visible or online, will be presumed to have been aware of its content and shall not be entitled to seek the resolution of the sale on grounds of latent defects.

 

Should the purchaser not have had access to such information and, in the month following the day of the sale, deem that a latent defect is affecting the horse, he/she must inform the vendor that he/she intends to request expert opinion on an amicable basis so as to assess grounds for such application.

 

Such examination shall be performed as soon as possible by an expert veterinary surgeon agreed upon by both parties, or, in the absence of an agreement, designated by ARQANA. The duration of proceeding shall not be claimed by the vendor as grounds for inadmissibility of further legal action. Bar a defect in form, both parties may undertake to accept the findings of the said expert.

 

In all circumstances, the action lodged by the buyer to seek the resolution of the sale must be taken directly against the seller whose name shall be supplied by ARQANA at his/her request. Under no circumstances may such action be directed against ARQANA, which shall not be held responsible.

 

No claims, even in case of redhibitory vices, shall be accepted if the buyer has not paid up the full price of his purchase. In case of redhibitory vices or dispute, funds shall be withheld at ARQANA.

 

Article 6bis – Conditions relating to the testing procedures for Non Steroidal Anti Inflammatory Substances (N.S.A.I.S)

 

The procedure and conditions hereunder described apply to any specific lot and do not in any way affect the conditions of sale, particularly with regards to the immediate payment of purchases. A Lot refers to a horse in training or in the case of a two-year-old, a horse in pre-training exercise.

 

1 - A lot will be returned to the vendor where it will have been proved that a blood test organised by ARQANA and taken on the day of the Sale confirms the presence of non-steroidal anti-inflammatory substances (proscribed drugs). All expenses incurred by the purchaser will be payable by the vendor.

 

2 - All tests must be carried out under the following conditions:

a) The purchaser must instruct ARQANA irrevocably to take a sample from the said lot such as to test for the presence of N.S.A.I.S.

b) The purchaser must indicate immediately to ARQANA, by filling in the appropriate section on the purchase docket, that he wishes for the test to be carried out. ARQANA will not accept any other form of request.

c) As soon as ARQANA has been notified, a veterinary surgeon appointed by ARQANA shall take the sample on the said lot.

 

 

3 - The results of the blood test as well as the resulting decision will be communicated to the purchaser and the vendor in the strictest confidentiality.

 

 

4 – The decision will be notified to both vendor and purchaser, and ARQANA shall not be held responsible for any loss or cost incurred for either party as a result of this decision.

 

 

5 – In the case of a purchaser having exported a lot out of the E.U. before ARQANA was informed of the results of the blood test carried out on the said lot, he/she will be obliged to retain the lot and pay the entire purchase price, even if the tests revealed the presence of N.S.A.I.S.

 

 

6 - In all other cases, should the purchaser wish to return a horse to the vendor, he/she must notify ARQANA of this decision by registered mail, within seven days of having been notified by ARQANA of the positive result of the blood sample. The decision must be notified in writing to ARQANA at its main office and will only be considered by ARQANA if it has been expressly accepted.

 

 

7 - In the absence of such notification, the purchaser shall be obliged to retain the lot and become liable for the entire purchase price.

 

 

8 - As soon as ARQANA has acknowledged receipt of the purchaser’s notification, ARQANA will in turn notify both the buyer and the vendor that the sale has been cancelled.

 

 

9 - The purchaser shall be entirely responsible for the lot from the fall of the hammer, and no claim will be considered should he/she fail to settle the full purchase price immediately.

 

 

10 - Once ARQANA has received the notification from the purchaser according to condition 6bis-6, the sale will be cancelled outright and the vendor shall make it his/her personal business to retrieve the lot from the purchaser. Under no circumstances may the lot be returned to the premises of ARQANA.

 

 

11 - Should the buyer decide to return the lot to the vendor according to the conditions above, the vendor must:

a) pay ARQANA all costs and expenses that ARQANA may have incurred in relation to the sampling and testing together with the relevant commissions which would have been payable if the sale had not been cancelled.

b) indemnify ARQANA against all costs and expenses of whatever nature, which may have been incurred as a result of the vendor’s decision (legal fees, etc.).

 

 

12 – Subject to the provisions of sub-section 11 above, the purchaser must pay to ARQANA, upon presentation of invoice, the costs related to the blood sampling and testing for the said lot.

 

 

13 - All notifications relating to sub-conditions 1 - 12 must be made in writing and sent by registered post or by fax to the vendor or the purchaser at the address mentioned on the entry form or on the purchasing docket, or at their regular home address or headquarters. All notifications will be presumed to have been issued on the day of its reception by the relevant party.

 

Article 6ter – Piroplasmosis

 

The procedure and conditions described below only apply to the lot and do not affect in any way the conditions regarding the cash payment of all purchases. Lot designates a horse in training, a mare or filly in or out of training, or a two-year-old in training.

 

1 – Unless the information that it is positive for piroplasmosis without qualification has been published and announced from the rostrum, any lot shall be returnable to the vendor in the case when the blood sample taken from this lot, on the purchaser’s request, on the sales grounds or their annexes, no later than the day after the sale, by the veterinary surgeon appointed by ARQANA and tested by a registered laboratory using the Elisa + IFAF protocols, reveals the presence of Theileria Equi or Babesia Caballi according to the conditions and levels specified by OIE.

 

2 – Any blood sample shall be taken according to the following conditions:

a)    The purchaser must irrevocably instruct ARQANA to take a blood sample on the said lot, and to have it tested for the presence of Equine Piroplasmosis.

b)   The blood test instruction must be given in writing, on the day of the sale, by the purchaser to ARQANA, which will appoint a veterinary surgeon to take the sample, no later than the day after the sale, on the sales grounds or their annexes. ARQANA shall only accept instructions that are given according to this procedure.

c)    The purchaser commits to paying all charges incurred by taking and testing the blood sample.

 

3 – The results of the analysis of the blood sample for the said lot will be communicated with the greatest confidentiality.

 

4 – The decision will then be notified to the vendor and purchaser, and ARQANA shall not be held liable for any loss or expenses caused to any party as a result of this decision.

 

5 – In the case when the purchaser exports any lot outside the European Union, before ARQANA has been informed of the results of the analysis of the blood sample for the said lot, he will have to keep the lot and pay the purchase price in full, including in the event when the results reveal that the lot is positive to Equine Piroplasmosis.

 

6 – In all other cases, when the purchaser decides to return the lot to the vendor, such decision must be notified to ARQANA by registered post with recorded delivery, within seven days from the date of ARQANA informing the purchaser of the result of the blood test. The decision must be notified in writing to ARQANA’s headquarters and will only be considered by ARQANA when it has expressly accepted it.

 

Article 7 - Liability in respect of damages caused by the animal or to the animal.

 

Until the sale, i.e. until the sale has been pronounced, the horses or lots to be sold shall remain the vendor’s property and ARQANA may not be held liable for any accident, disease or damage sustained by the animals or caused by them to third parties either inside or outside the premises where they are kept.

Each potential purchaser will proceed to the consultation of the veterinary file and, if needed, carry out complementary veterinary tests, under his responsibility, within the protocol established by the Association of Equine Veterinarians. In case of accident caused by a horse or injury to a horse examined by the potential purchaser or his veterinarian, they will be solely responsible and will have to bear all the direct or indirect consequences. Sellers and purchasers commit themselves not to hold ARQANA responsible in any circumstances.

 

Article 8 – Dissolution of partnerships

 

When a sale is required in order to dissolve a Partnership between co-owners no reserve can be accepted on the total value of the horse.

On the other hand, any one of the co-owners may bid on his/her own behalf for the whole horse and have it knocked down to him. In such case, the purchasing commission will apply exclusively to the part that did not belong to him and the buy-back commission will apply to the part that belonged to him. In the case when one partner buys the share of another, ARQANA shall be released from its payment guarantee does not guarantee payment to the partner selling. The partner selling will be paid by ARQANA as soon as the partner buying has settled for his purchase.

 

Article 9 – Payment to the vendor

 

ARQANA guarantees payment to the vendor for each horse sold, with half due 30 days after the end of the sale, and the remainder 60 days after the sale.

 

This guarantee no longer holds if the vendor owes money to ARQANA. However, such guarantee shall not apply to an irresponsible bidder or a seller who has explicitly approved a successful bidder in spite of the request to sell on the basis of irresponsible bid lodged by ARQANA. In such cases, the vendor shall only be paid after the purchaser has transferred the funds to ARQANA.

 

All actions in respect of: repossession, cancellation of the sale taken by the buyer, disputes between vendor and buyer, order sought by a third party on the amounts due to the vendor, shall render the guarantee of payment null and void.

 

Furthermore, in such cases, payment shall be made in the hands of the vendor up to the amount available, upon receipt of the funds from the buyer.

 

In the case of a sale to dissolve a partnership, when one of the partners buys out his partners’ shares, ARQANA shall be released from its guarantee of payment to the vendor. ARQANA shall pay the partner selling upon reception of the funds from the partner buying.

 

ARQANA reserves the right to offset receivables and debts in respect of the same customer at the time of the auction.

 

The vendor shall have sole responsibility for statutory declarations and payment of VAT to the relevant tax authorities if applicable.

 

Article 10 - “Folle Enchère opposable au vendeur“ (Irresponsible bid).

 

Within 10 days following the sale, ARQANA may inform the vendor of the purchaser’s default or insufficient guarantees.

 

After having served final notice without result, with the vendor’s agreement, the horse may then be re-offered at the earliest opportunity either by ARQANA or another sale company. The vendor shall have no claims from ARQANA on the difference in price if applicable.

 

The defaulting purchaser will be obliged to pay the difference between the original sale price and that of the resale and will not be entitled to any sum in excess, this sum being accorded to the vendor. Should the vendor not wish for the horse to be re-offered, and having notified ARQANA by registered post, the sale shall be resolved by law and the horse shall be returned to the vendor, without prejudice of damages paid by the defaulting purchaser to the vendor.

 

After 10 days following the sale, ARQANA shall accept responsibility for the guarantee of payment to the vendor, according to the conditions stated in Article 11. From the 11th day, ARQANA, subrogated to the purchaser’s rights and obligations by its payment guarantee, will become the legal owner of the horse and will dispose of all rights related to it, notably retention of title; possibility to undertake proceedings against a defaulting purchaser; re-offer a horse in case of irresponsible bid and claim the difference in price if applicable, any surplus remaining the property of ARQANA.

 

Article 11 - Payment by the buyer - Collection of documents.

 

Payment is due immediately for all sales at public auction, including on Arqanaonline.com. Only the seller shall, after the auction, be entitled to authorise the successful bidder, in writing, to pay in accordance with terms and conditions specified in the written agreement. In such a case ARQANA shall pay the seller only after receipt of the buyer’s payment.

 

Any person who bids shall be considered to be bidding for himself and the successful bidder, whose name will be announced in the records, is personally responsible for his purchase. If the successful bidder declares to be acting on behalf of a third party he must produce a written mandate explicitly stating that the successful bidder is together with the third party jointly responsible for the full amount of the purchase.

 

The successful bidder whose name shall be mentioned in the minutes shall be personally responsible for his purchase in the event of his principal’s defaulting. Should the successful bidder not hold explicit mandate to act, ARQANA may consider as joint-debtor whomsoever appears to be, in one way or another, the tacit principal of the successful bidder.

 

No levy, irrespective of the reason, may be applied to the invoices issued by ARQANA. The buyers or their agents shall therefore pay these invoices in full. All payments shall be effected through the agency of ARQANA either by wire transfer, cheque or postal order (as no payment in cash is accepted). Payment for the subjects exported abroad shall be made through Office des Changes (Echange Services) by currency transfer and to the order of ARQANA.

 

Only after payment for their purchases and, when appropriate after signing of the transfer of liability shall the buyers obtain the release notes and the documents regarding their purchases from the secretary of the sales or by applying to ARQANA. Payment shall include the auction price and be increased by the costs of the said auction.

 

These costs, as well as the price shall be payable immediately before the handing over of the documents, failing which, a sale on the basis of irresponsible bid shall be proceeded with.

 

Even in the case of a redhibitory defect, no complaint is admissible if the buyer has not paid the total amount of his purchase.

 

Should the payment not be proceeded to by the purchaser, ARQANA will write to inform the buyer that he has eight days to complete payment or incur interest charges for late payment. After this final delay of eight days, interest will be added to the invoice without any further notice. Interest will be charged at the rate of 0.5% a month from the first day of the sale on the total amount of the invoice and if payment is not made within six months this will be increased to a monthly rate of 0.75% before tax.

 

ARQANA reserves the right to pass unpaid invoices on to its lawyers with a view to taking legal action to recover outstanding debts. Any cost or expense incurred by ARQANA for the recovery of a debt will be the responsibility of and paid for by the debtor or his mandate; these costs will be no less than 10% of the amount to be recovered.

 

In case of a redhibitory vice or dispute the funds shall be withheld at ARQANA.

 

Article 12 - Clause of ownership

 

ARQANA, subrogated by sole virtue of its execution of the guarantee of payment in respect of the rights and obligations of the seller, reserves the right to retain ownership of the horses delivered until full payment of the price and relevant costs has been made. In that respect, the submission of drafts or any other instruments creating an obligation to pay shall not constitute a payment in the sense of this provision. The buyer undertakes to abstain to dispose of the horse through sale, mortgage, lien, loan or any other encumbrance until full payment has been made.

 

Any agent undertakes to inform his principal of the existence of this clause. In the event of a seizure or any other intervention on the part of a third party in respect of the horse as well as in the event of winding up, court administration or liquidation of assets, the buyer shall inform ARQANA immediately.

 

This ownership clause notwithstanding, the buyer shall bear the burden of risks in case of death, accident or disease sustained by the horse. He shall bear all costs regarding the upkeep of the horse sold from the date of the auction. In case of non payment of the price and relevant costs, the horse may be seized wherever it is and, in particular, on the premises of a public or private trainer, if ARQANA sees fit and without any formality. The price obtained shall be deducted from the amount of the auction in principal and costs, the initial buyer remaining liable for the surplus of his bids and any relevant damages.

 

The sale itself shall be cancelled by right and no legal action shall be required to that effect. A simple injunction issued by the President of the relevant Court shall suffice to claim ownership of the unpaid animals.

 

Article 13 - Legal Address

 

ARQANA has the right to ask a foreign buyer to designate an address in France, care of either his trainer or agent or another representative, in the interests of both parties and to facilitate the exchange of information and documents.

 

Article 14 - Release notes

 

No horse either sold or unsold shall leave the premises where it is kept without a release note, which be passed on to the person in charge of the horse after the sale’s outcome has been confirmed.

Once the sale has been pronounced, keep and other costs shall be born by the purchaser.

 

Article 15 – Costs for the vendor’s account

 

Vendor’s commission is 6%.

Buy backs must be notified on the day of sale, failing which vendors will be charged the usual commissions.

 

The vendor shall be liable for any additional tax or due imposed by the government or local district over or above what is currently applicable.

 

Any invoices sent to the vendor shall by due for immediate payment. If immediate payment is not forthcoming, ARQANA will send a reminder within 8 days, after which period interest at 0.75% a month will be added to the vendor’s account from the date of the reminder.

 

Article 16 – Costs for the buyer’s account

 

Buyer’s commission is 6%.

All horses are sold with V.A.T. added on. For the calculation of V.A.T., the basis is the auction price + buyer’s commission. Broodmares that have been covered, fillies out of training and due to be covered, stallions and stallion shares are subject to a 10% V.A.T. rate. All other horses including those of racing age, yearlings and foals are subject to a 20% V.A.T. rate.

 

Calculation of VAT:

 

I - The calculation of VAT distinguishes 5 cases:

 

1. The buyer is French and pays VAT in France: invoicing VAT on the total sale price (VAT can be reclaimed by the buyer).

 

2. The buyer pays VAT in an E.U. member country other than France and supplies his E.U. identification number and the horse is delivered in an E.U. country: exemption from VAT (production of documentary evidence of delivery is compulsory).

 

3. The buyer pays VAT in an E.U. member country other than France and supplies his E.U. identification number and the horse stays in France: invoicing VAT (VAT may be reclaimed from tax services in France).

 

4. If the buyer is not registered for VAT in France or in another country VAT is charged.

 

5. If the horse is exported from the E.U.: exemption of VAT on presentation of customs document confirming export, (the original DAU No 3), and giving ARQANA as the exporter.

 

ARQANA disclaims any responsibility as regards the judicial or tax consequences resulting from a false declaration made by the buyer.

 

 

II - Horses sold under the provisions of temporary importation regulations give rise to four possible outcomes:

 

1. If buyer is registered for VAT in an E.U. country other than France and provides their VAT number and the horse is exported from France to another E.U. country: exemption from VAT on presentation of a document confirming arrival in E.U. country.

 

2. The buyer is registered for VAT in an E.U. country other than France and provides their VAT number and the horse remains in France: VAT charged at 20%.

 

3. The buyer is not an E.U. resident and wishes to keep the horse in temporary importation: no VAT is charged but the buyer meets the costs of the transfer of the temporary importation.

 

4. The horse is exported immediately: exemption from VAT on the condition that the document of temporary import is cleared by the buyer with the Customs Administration.

 

ARQANA disclaims any responsibility as regards the judicial or tax consequences resulting from a false declaration made by the buyer.

 

Article 17 – Compensation for non-presentation of a lot entered on Arqanaonline.com

 

The vendor undertakes not to propose or sell any horse whose entry has been accepted by ARQANA and promoted on arqanaonline.com.

 

For any horse which is not offered on Arqanaonline.com but is sold privately during the month following the sale, even if the private sale is not completed with the concourse of ARQANA, the vendor is liable to pay a flat fee of €5,000 + VAT. ARQANA does not guarantee payment for sales made in these conditions.

 

Article 18 – Entries

 

Vendors and buyers shall comply with regulations from France Galop as regards entries and forfeits of all horses put up for sale.

 

Article 19 – Cancellation of sale

 

In case of cancellation of the sale for any reason, the vendor shall be held liable to reimburse the buyer for the full purchase price and purchaser’s commission as well as all expenses incurred by the buyer on account of the horse while in France until time of cancellation of the sale.

 

In the event of export of the horse, the costs incurred in transport of the horse outside France, keep, and return transport to France shall be born by the buyer.

 

In any case, no action shall be brought against ARQANA who cannot be held responsible. It is expressly understood that the buyer has no right to make any claim except one based on redhibitory vices if any horse sold starts in a race.

 

Article 20 – Jurisdiction

 

All disputes regarding the interpretation or the implementation of the present conditions shall be referred to the commercial court of Lisieux.