Legal Question in Business Law in Pennsylvania

Right of first refusal on a horse

Someone bought a horse with a contract that gives the previous owner first right of refusal on resale, and the new owner then sold to a third party without either disclosing the existence of the right of refusal clause to the new buyer, or contacting the former owner to offer the horse. The new sales contract says the current seller warrants and guarantees there are no encumbrances of any sort whatsoever on the horse. Can the original owner claim the horse for the sale price, and for how long? If the value of the horse rises, can the original owner claim it for the original, lower purchase price? What if the new buyer cannot contact the original owner to make her aware of the sale and ensure the right of first refusal is waived? The current seller will not divulge contact information.


Asked on 4/16/07, 11:52 am

1 Answer from Attorneys
Daniel Pepper Pepper Law Group, LLC

Re: Right of first refusal on a horse

To be able to provide a complete answer, I would need to review the terms of each agreement involved. Offhand, my guess would be that the original owner (assuming he becomes aware of the sale) would only have a cause of action against his buyer for violation of the right of first refusal clause. The original seller's remedy would presumably be whatever damages he can prove he sustained as a result of not being able to purchase the horse.

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Answered on 4/16/07, 2:51 pm


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