Livestock Sale and Purchase Agreement

What a good one includes

• Detailed identification of each animal, including ear tag numbers, brands, breed, age, and registration details to prevent any mix-ups during transport.
• Specific veterinary health certifications and disease testing requirements that must be met prior to loading the animals.
• A clear definition of the exact moment ownership and risk of loss transfer from the seller to the buyer, such as upon loading at the origin farm or unloading at the destination.
• Structured payment terms outlining deposit amounts, final payment deadlines, and accepted payment methods.
• Allocation of transportation costs, transit insurance, and responsibility for securing necessary state-line transit permits and brand inspection certificates.
• A dispute resolution clause that specifies how disagreements over weight shrink, grade, or unexpected illness will be mediated.

Common mistakes to avoid

• Relying on a handshake agreement or a generic bill of sale that lacks specific health warranties and disease representations.
• Failing to clearly define who is financially responsible for animals that die or get injured during transit.
• Neglecting to specify the exact weighing conditions and shrink adjustments, which can significantly alter the final purchase price of market-weight animals.
• Omitting clear timelines and responsibilities for transferring breed association registry papers to the new owner.

Frequently asked questions