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 prevail.
It is assumed that all buyers and vendors have read, understood and accepted these conditions of sale.
These conditions shall apply to all transactions performed by the VENTES OSARUS.
These conditions are in accordance with the law of July 10th 2000 and the articles 2001-650, 651, 652 of 19/7/2001 which are concerned with the voluntary sale by public auction of furniture.
This is a public auction, therefore entry to the sales grounds has to be free and open to all, however because the showing of horses involves risk, all those who visit the sales grounds do so at their own risk and are obliged to respect the recommendations concerning behaviour made by the management of the sales establishment.
Article 1. Sales by public auction.
In accordance with the law, Public Auction Sales are conducted by licensed auctioneers appointed by VENTES OSARUS.
The VENTES OSARUS, will act on behalf of vendors, who agree to give responsibility for billing and collecting money to the VENTES OSARUS.
These conditions of sale shall apply in every instance unless otherwise indicated by public announcement before the sale
Under the terms of the law of July 10th 2000 any private sale of a horse which has been presented for sale by auction by the VENTES OSARUS, bought back by the vendor and subject to a subsequent offer, will be considered as a sale by public auction for all instances where these conditions apply.
The liablity of the VENTES OSARUS towards buyers and vendors is limited to the cases defined in the present conditions of sale, and accepted contractually by buyers and vendors. In a general sense if a buyer or a third party fails to follow these conditions of sale the VENTES OSARUS accept no liability.
Article 2. Bidding.
Minimum bid : 1 500 €
Payment in full for any purchase is immediately due.
In accordance with the law, bids shall be accepted and displayed in Euros.
The VENTES OSARUS 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 paid for previous purchases at the VENTES OSARUS or other sales organisations.
If it is established that two or more people have made a bid of the same amount at the same time on a horse, either vocally or by sign, and at the moment the hammer drops they simultaneously claim the horse, then the horse shall immediately be reoffered for sale by auction starting at the price of the last bid and open to all those present. The horse will be sold to the highest bidder.
Article 3. “Folle Enchère” (Irresponsible bid)
VENTES OSARUS reserve expressly the right to proceed to the re-sell on “folle enchère”, the same day, and following the last lot of the day, any animal whose Buyer fails to make settlement for his purchase or to sign the acknowledgement of purchase. The vendor may not claim the difference in price from VENTES OSARUS.
In the event that the VENTES OSARUS considers that the Buyer does not offer sufficient guaranties for the payment of his purchase, VENTES OSARUS will be entitled, should immediate payment not be made, to re-sell the Lot in the same Sales session under the procedure known as ‘folle enchère’ or irresponsible bid, after the last Lot of the day (or the day after), without process of law at the sole risk of the defaulting Buyer whom will then become liable for the full amount of the sales tax applicable to the first sale as well as the ‘folle enchère’ or irresponsible bid sale to the vendor. In which case VENTES OSARUS, will only be liable to pay the vendor the amount realized from the second sale (folle enchère or irresponsible bid). In case of a second sale by irresponsible bid or ‘folle enchère’ , unless VENTES OSARUS receives different instructions from the vendor, which will be given to the Auctioneer before the sale, the original Reserve Price will remain the same.
In the same conditions, if immediately after the fall of the Hammer, the Buyer is not found to sign the acknowledgement of Purchase, the horse will be re-sold during the same Sales session. In this case, VENTES OSARUS will accept no liability towards the vendor or the defaulting Bidder.
VENTES OSARUS has the sole responsibility for determining when it is necessary to re offer an unpaid horse.
Article 4. Horses offered for sale.
These sales are reserved for horses born and bred in France or assimilated ones.
A premium is given to the owners of horses born and bred in France or assimilated, which run in the races not restricted to this category of horses and unless there are special conditions. (see section 86 of Horse racing Code) and it is shown under the vendor’s responsibility.
Article 5. Information to be supplied by the vendor.
The vendor must provide in writing any public announcements to be made at his responsibility before the sale.
The VENTES OSARUS undertakes to pass on accurately these statements to the public but does not accept responsibility for the accuracy of the vendor’s statements particularly with reference to VAT, pedigree, race record, entries and earnings of horses, returnable vices or last service date, etc.
Thus the vendor shall indicate in writing and before the sale, all errors or omissions in respect of the catalogue so that such errors or omissions can be notified to the public through an announcement from the rostrum, prior to the sale, and entered in the minutes.
Any vendor who fails to rectify in writing before the start of the sale the information supplied in the catalogue in respect of the horses he is putting on show shall be deemed to have accepted such information and therefore responsibility for its truthfulness shall be entirely his own.
The VENTES OSARUS wishes to draw the attention of all buyers to the announcements made from the rostrum during the sale. These announcements can contain information which is not in the catalogue.
Article 6. Veterinary examination.
VENTES OSARUS shall commission a veterinary surgeon to proceed with verifying the identity of the horses. In the case of a doubt, the vendor undertakes to carry out at his expense any tests required to establish the true identity of the horse.
Any buyer who wishes to consult a veterinary surgeon, at their own expense, in order to examine a veterinary dossier before the sale should contact VENTES OSARUS for the veterinary surgeon’s contact numbers.
The vendors must ensure that all the horses presented at the sale undergo the statutory vaccinations required under the French Horse-Racing Acts together with a certificate of negative Coggins test less than a month old. In the absence of this document, the horse shall not be presented at the sale.
In case of accident caused by a horse or injury to a horse examined by the potential purchaser or by his veterinarian, the latter will be solely responsible and will have to bear all the direct or indirect consequences, vendors and purchasers commit themselves not to hold the VENTES OSARUS responsible in any circumstances and to renounce to any legal recourse against the organizer.
Article 7 - Absence.
If a horse entered in the sale is absent on the day of sale the vendor shall pay the VENTES OSARUS a withdrawal fee of 750 € in addition to the entry fee barring exceptional circumstances. In the case of death, accident or serious illness a veterinary certificate must be presented at the latest on the day of the sale.
VENTES OSARUS will have the right to move a motion to the President of the competent Court to name an expert to report on the condition of the animal.
The fee shall be due if the horse is presented to be sold at another sale. If the horse is sold privately before the sale these 750 € will due in addition to the other expenses outlined in article 21.
Article 8. Required documents.
The horses entered by the vendor shall be accompanied by due documents : passport, registration card, attached documents i.e. receipt of deposit and description booked as well as a covering certificate for in foal mares,a negative Coggins Test less than a month old as well as a covering certificate for mares in foal, irrespective of the nature of the siring contact.
The documents shall be submitted before the sale by the vendor to VENTES OSARUS.
Liability may be claimed against the vendor in the event such documents have not been submitted in due time, without prejudice to the VENTES OSARUS’s right to refuse the presentation of the horse at the sale.
However, should the sale of the animal proceed, under no circumstances can VENTES OSARUS be held responsible for the absence of the said documents.
Article 9. Vendor’s guarantees.
Horses sold at public auction are subject to ordinary legal warranties.
No claims, even in case of latent defect, shall be accepted if the buyer has not paid the full price of his purchase.(cash)
a) Guarantee concerning latent defects.
The vendor shall guarantee the buyer against the vices specified in section 285 of the French Rural Code which have not been declared before the sale.
Stable vices, that is weaving, crib biting, wind sucking or a habitual box-walker, should be announced from the rostrum before the sale, if they are not declared the buyer has the right to request the cancellation of the sale.
Any action taken by the buyer in respect of the said latent defects shall be taken in accordance with the provisions of section 213-1 et seq. of the French Rural Code, i.e. within 10 days from the sale (as witnessed by the post mark) not counting the day of the sale, except for periodical inflammation and infectious anaemia for which such period shall be 30 days not including the day of the sale. All deadlines shall expire on the last day at 12.00 pm. Wherever 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 vendor shall 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 shall inform the vendor (via registered mail)
and the VENTES OSARUS of the submission of his application to the Judge, enclosing a veterinary certificate detailing the vice concerned.
Any purchaser who, by himself or through the intermediary of his veterinarian mandated for this purpose, will have had or might have had access to the information available to the sales office will be presumed to have known their contents and will not be able to take advantage of this on account of latent defects to obtain the annulment of the sale.
If the buyer did not have access to this information and if within the month that follows the sale, the buyer feels that the horse is affected by a latent defect, he may, with the vendor’s consent, request expert opinion on an amicable basis so as to assess grounds for such application. This examination shall be performed by an expert veterinary surgeon agreed upon by both parties. The length of the examination cannot be invoked by the vendor as a reason to challenge the admissibility of further legal action. Barring technicality, both parties may undertake to accept the findings of the said expert.
In all circumstances, the action seeking the annulment of the sale lodged by the buyer shall be taken directly against the vendor whose name shall be imparted by VENTES OSARUS at his request. Under no circumstances can such action be directed against the VENTES OSARUS.
b) Sale of a stallion or a broodmare.
Any vendor of broodmares shall specify in the catalogue: — the mare’s production, year by year since her arrival at the stud farm and, regarding the dead offspring the mentions; - still born, dead at birth or accidental death; the date she was last covered; the assumed pregnancy stage, abortions, twin births.
The vendor shall be responsible for the accuracy of this information. Any action taken by the buyer in respect of an error or omission shall be against the vendor only. In the event an important piece of information entered in the catalogue or announced from the rostrum at the request of the vendor proves incomplete or inaccurate, the sale may be cancelled at the request of the buyer within one month from the sale.
The vendor may have the stage of pregnancy announced from the rostrum and produce in evidence a certificate issued by a veterinary surgeon within the 10 days preceding the sale. The buyer shall retain the right to have the broodmare examined by a veterinary surgeon agreed upon by the vendor within 24 hours from the sale before the mare has left the premises of the sales establishment. If the findings of the veterinary surgeon contradict the statements made by the vendor, the sale shall be nullified by right.
Any broodmare sold “empty”, after indication that she has been covered, which turns out to be “full”, shall be returned to the vendor. The latter shall, of course, refund the buyer the price of the purchase plus an interest of 12% interest per annum, the selling costs, the cost of the upkeep at current rate, within 15 days from the registered mail sent by the buyer informing him that the mare has been confirmed full. However, the buyer shall retain the possibility, if he so wishes, to keep the broodmare by offering the vendor a simple refund of the price of the covering with no extra costs. In the event the buyer has allowed the broodmare to give birth he shall be deemed to have agreed to pay the price of the siring whether the offspring is born viable or not.
The potential buyer of a mare having just out of training shall have a right prior to the sale, to seek the vendor’s permission to have the mare examined by a veterinary surgeon agreed upon by the vendor so as to ensure that the mare is fit for reproduction in particular as regards her genitals.
Any vendor of a stallion or of a horse which may become a sire shall undertake, in respect of the buyer and, in particular the French National Stallion Farms Services, to accept at the buyer’s request, the annulment of the sale of the animal in the event the horse has not complied with the customary fecundity tests by the 30th day from the sale and in respect of the French Farms Services, with the statutory tests.
c) Showing of horses.
The vendor shall ensure that each horse presented actually bears the number assigned to it in the catalogue. In the event of an error or confusion, the vendor shall bear sole responsibility and such responsibility shall not befall on the VENTES OSARUS.
d) Entry and statutory vaccinations of horses.
See article 6. – Veterinary examination.
e) Horses sold under juridical decision.
Horses sold under juridical decision are sold as they stand, without any guarantee, under cover of the article 1649 of the civil code.
Article 10. Miscellaneous obligations for vendors.
The horses offered for sale shall arrive on the sales grounds by 9 am at the latest on the morning of the sale, with the compulsory halter and a lunge so as to allow the buyers to examine them.
The halter shall become the buyer’s property.
Furthermore at the risk of being barred from the sale they shall be fitted with a bit.
In the case, the general health condition of a horse is obviously not satisfactory, VENTES OSARUS has the right to refuse to present the horse at the Sale with no charge attached for VENTES OSARUS. No penalty will be charged to the Vendor either.
The vendors shall ensure that a stable hand chosen by them and in their pay is present and remains under their responsibility for up to three horses presented. This stable hand will be guardian of the said horses from their arrival on the sales grounds, at the latest on the eve of the sale, until the buyer takes possession of them or until the departure of the horses which are unsold. An extra hand shall be supplied by them for each extra three horses.
The vendor shall be present or represented at the time of the sale of his horses so as to make any decisions required and, in particular, in the event of an irresponsible bid.
Article 11. Liability in respect of damages caused by the animal or to the animal.
In case of accident caused by a horse or injury to a horse examined by the potential purchaser or by his veterinarian, see article 6. – Veterinary examination.
Until the sale has been pronounced, the horses or the lots to be sold shall remain under the guardianship and responsibility of the vendor, the VENTES OSARUS may not be held liable for the accidents or diseases or damage sustained by the animals or caused by them to third parties either inside or outside the establishment. It is specified that the owner vendor, or his agents, will insure the guardianship of the horses, during the time that they are present on the sales grounds (unloading, accompaniment to the stables, presence in the stable night and day, for feeding and watering, walking, presentation to buyers, loading if the horse is unsold, etc.). OSARUS SALES will supply a stable for each horse as well as hay and water.
Fire risks, loss and damage shall also be fully charged to the vendor.
Loading and unloading operations as well as transport to and from the location of the sale and all other similar operations shall be performed for the account to the vendor and at his own cost and risk.
Immediately after the sale, the buyer shall substitute for the vendor as regards these responsibilities.
In the event VENTES OSARUS agrees to its employees performing on behalf of the owner (vendor or buyer) loading, unloading or shipping operations such acceptance shall not constitute any change to the conditions stated above. Moreover, the buyers and the vendors shall always remain free to take charge of loading or unloading operations themselves.
Article 12. Unreserved sale.
As the sale is voluntary the vendor or his agent can still buy back the horse he has presented if he deems that the bids are not high enough on condition that he declares so himself or through his agent holding due power of attorney in writing. Such declaration shall be made to the auctioneer as soon as the horse is bought back. The vendor shall then bear the costs of the purchase as indicated on the entry form.
Article 13. 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 himself for the whole horse and have it knocked down to him in such a case, the purchasing costs will apply exclusively to the part which did not belong to him and the repurchasing costs will apply to the part which belonged to him.
Article 14. Payment Procedures
Payment is due immediately for all sales at public auction. Only the vendor 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.
VENTES OSARUS must be notified of the existence of this written statement.
In the event that the vendor has agreed to postpone payment, the horse shall be delivered as soon as full payment of the purchase price has been received. In this case, the purchaser authorizes OSARUS SALES to place the horse either with the vendor or at a stud farm at the purchaser’s own risk and charge.
The delivery of the horse before total payment of the purchase price will only be possible with written agreement from the vendor.
Only the vendor can authorise the purchaser, in writing, to settle the purchase price following receipt of the invoice and can authorise the horse to leave the sales before the payment is made to OSARUS.
Article 15. Vendor’s Payment.
VENTES OSARUS shall pay the vendor only after receipt of the buyer’s payment, on the thirtieth working day not including the day of the sale.
Furthermore, VENTES OSARUS 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 the statutory declarations to the relevant tax authorities for VAT if applicable.
Article 16. Payment by the buyer. - Collection of documents.
A. In case of non-payment, VENTES OSARUS will inform the successful bidder by signed for / registered mail :
1. That he has eight clear days to settle his debt ;
2. That after this time delay interest of 1% per month as of the first day of the Sale, shall be due retrospectively on the total invoice.
3. That VENTES OSARUS reserves the right to hand the file over to its lawyer who will undertake collection.
4. That all fees and charges involved in the collection by VENTES OSARUS have to be paid by the debitor, they will never be inferior to 10% of the amount to be collected.
B. In case of hidden defects, or cancellation of the sale, the money shall be held by VENTES OSARUS.
C. Any person who bids shall be considered to be bidding for themselves unless he can provide a written power of attorney from the person for which he has bid.
Any person who bids shall be considered to be bidding for themselves 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 power of attorney 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.
In the event the successful bidder does not hold explicit power to act, he will be joint-debtor with the one who turns out to be, in one way or another, the principal of the successful bidder.
No levy, under any circumstances, may be effected on the invoices issued by the VENTES OSARUS. The buyers or their agents shall therefore, pay these invoices in full.
D. All payments shall be made through the agency of the VENTES OSARUS and will be demanded in its entirety for the net amount stated on the invoice. Payment for subjects exported abroad shall be made through the Office des Changes (foreign exchange) by currency transfer made to the VENTES OSARUS. Only when total payment of their invoices is made can the successful bidders be given their exit papers delivered by VENTES OSARUS.
Payment shall include the price of the auction and shall 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
Payment to the vendor shall be made only when VENTES OSARUS is in possession of all the documents in respect of the horses for sale.
Article 17. Legal Address.
The VENTES OSARUS 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 18. Release notes.
No horse either sold or unsold shall leave the establishment without a release note. The note shall be collected from the office of the VENTES OSARUS.
Prior to collecting their horse, the buyers shall report to the VENTES OSARUS office to pay the amount of their purchase so that they can be issued with the release note required for the collection.
Unless an explicit opposition on the part of the vendor is lodged with the VENTES OSARUS within half an hour following the sale the latter shall release the lot sold at the request of the buyer or his agent this however shall not entail any responsibility on the part of the VENTES OSARUS.
The horses shall have left the sales establishment at 12:00 pm at the latest, the day following their presentation. The horses that have not been removed before then will be transported, at the purchaser’s expense, or the vendor’s expense if the horse is unsold, to a stud. The horse will not be allowed to leave this stud before full settlement of the purchase invoice and the price of the transport and guardianship of the horse.
Article 19. Costs for the vendors’ account.
These costs are outlined on the entry form for each sale.
Buy backs must be notified on the day of sale, failing which vendors will be charged the usual commissions.
The vendor will 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 are due for immediate payment. If immediate payment is not forth coming the VENTES OSARUS will send a reminder within 8 days, after which period interest at 1% a month will be added to the vendor’s account from the date of the reminder.
Article 20. Costs for the Buyers’ account.
For sale at auction or subsequent private sale in addition to the hammer price the following commissions are due for immediate payment, the buyer will have to pay sale’s charge.
All horses are sold with VAT added on, but the sale’s price never includes VAT.
1) Purchase costs:
Sale by auction less than or equal to 15 000 € before VAT : 7%
Sale by auction over 15 000 € before VAT : 6%
2) VAT: Calculation basis = price + purchase costs.
a) The calculation of VAT distinguishes 5 cases:
• The buyer pays VAT in France: invoicing 5% VAT (VAT can be reclaimed by the buyer).
• The buyer pays VAT in an EEC member country other than France and supplies his EEC identification number and the horse is delivered in an EEC country: exemption from VAT (production of documentary evidence of delivery is compulsory).
• The buyer pays VAT in an EEC member country other than France and supplies his EEC identification number and the horse stays in France: invoicing 5.5% VAT (VAT may be reclaimed from tax services in France).
• If the buyer is not registered for VAT in France or in another country VAT is charged at 2.1% for a private individual or 5.5% for a company.
• If the horse is exported from the EEC: exemption of VAT on presentation of customs
document confirming export, (the original DAU No 3), and giving the VENTES OSARUS as the exporter.
b) Horses sold under the provisions of temporary importation regulations give rise to four possible outcomes:
• If buyer is registered for VAT in an EEC country other than France and provides their VAT number and the horse is exported from France to another EEC country ; exemption from VAT on presentation of a document confirming arrival in EEC country.
• The buyer is registered for VAT in an EEC country other than France and provides their VAT number and the horse remains in France; VAT charged at 5,5%.
• The buyer is not an EEC 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.
• 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.
The VENTES OSARUS disclaims all responsibility as regards the judicial or tax
consequences resulting from a false declaration made by the buyer.
Article 21. Private sale of horses entered but not presented.
The Vendor undertakes not to propose or sell any horse whose entry has been accepted by the VENTES OSARUS.
For any horse which does not pass through the ring but is sold privately during the two months before the sale for which it has been entered or the month following, even if the private sale is not completed at the sales ground the vendor is liable to pay 750 €, as well as 10% of the average price realised at the session for which the horse was entered.
Aricle 22. Commission to Intermediaries.
The intermediaries (trainers or bloodstock agents) acting for themselves or the account of an owner(s) in the purchase of a horse will receive, according to practice, a commission, taken from the owner’s account, on horses purchased for at least € 1,500 :
This commission will be awarded to the intermediary after payment for the horse(s) has been received, on condition that the VENTES OSARUS has received one bill per horse of 5% before VAT of the hammer price, excluding VAT at 5,5%) in the 30 days following the sale.
If these conditions are not met or the time limit has passed, no commission will be paid by VENTES OSARUS.
In the case of a dispute arising between Purchaser(s) and Vendor(s), the right of the trainer’s or bloodstock agent’s commission will be cancelled.
Article 23. Entries.
Vendors and buyers shall comply with Racing Societies regulations as regards everything concerning the entries and defaults of the horses put up for sale.
Article 24. Refusal to present.
VENTES OSARUS reserves the right to refuse to present a horse on the day of the sale and, in particular, wherever the model is insufficient.
Article 25. 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, maintaining the horse, and return transport to France shall be borne by the Buyer.
In any case, no action shall be brought against VENTES OSARUS who cannot be held responsible.
It is expressly understood that the Buyer has no right to make any claim except one based on redhibitory defects if any horse sold starts in a race.
No claim for cancellation of the sale may be made against the Vendor after the one-month warranty period, and only for the causes herein before set forth.
Article 26. Jurisdiction
All disputes regarding the interpretation or the performance of these conditions shall be referred to the competent courts of the OSARUS SALES headquarters, in Lisieux (14100).