Terms and Conditions

Elite Foals Auction
on August 19th, 2023 at Elmshorn

A. General
I. Organizer of the auction are the die Holsteiner Verband Vermarktungs- und Auktions GmbH, Elmshorn, Westerstraße 93-95, 25336 Elmshorn, and the Hannoveraner Verband e.V., Lindhooper Str. 92, 27283 Verden.
The Holsteiner Verband Vermarktungs- und Auktions GmbH, Elmshorn and the Hannoveraner Verband e.V. organize a foal auction with a publicly authorized and sworn-in auctioneer in charge of selling the foals at auction. As part of the above named auction, rights to transfer of ownership of unborn foals are also auctioned. The Hannoveraner Verband e.V. organizes this part of the auction sale. For reasons of representation, this part is called “pregnancy auction”.
The exhibitor is the owner authorized to dispose of the foal or the ownership rights of the unborn foal.
 

II. In the auction sale, the foals as well as the pregnancies/ rights to transfer of ownership of a yet unborn foal listed in the auction catalogue are publicly sold on behalf and for the account of the exhibitor as seller under section 383 paragraph 3 BGB (German Civil Code). In the event of a successful bid, the purchase contract for the foal or the ownership transfer rights for the unborn foal is concluded between exhibitor as seller and the successful bidder as buyer. For agency services, the organizers charge a commission fee from the exhibitor ranging from 5 % to 19 %, depending on the knock-down price.
 

III. The exhibitor agrees to the auction terms and conditions upon acceptance of the foal for auction. By participating in the bidding process, each bidder agrees to the auction terms and conditions.  
 

B.    Auction
I. Foals: At auction, the foals are presented in hand. Bids for the foals are made in euros. The starting bid is € 5,000. To be accepted, any bid must be at least € 250 higher than the previous one.

II. Pregnancies/ rights to transfer of ownership of an unborn foal: At auction, only information on the pregnancy on offer is displayed on a video screen. Bids for the pregnancies/ ownership transfer rights are made in euros. The starting bid for a pregnancy is € 5,000. To be accepted, any bid must be at least € 250 higher than the previous one.
 

III. Any doubt as to the validity of the knock-down has to be asserted at once. At the discretion of the auctioneer in charge, the bidding can be reopened and continued. This is admissible even if the purchase note has already been signed, but must be effected at the latest by the final fall of the hammer for the last foal. Doubts as to the validity of the knock-down may only be asserted by a person bidding for the foal in question, the auctioneer, or the organizers, represented by the executive directors. Disputes as to the validity of the knock-down are decided by a commission comprising the auctioneer, the executive director of the Holsteiner Verband Vermarktungs- und Auktions GmbH and the executive director of the Hannoveraner Verband e.V. or their deputies by simple majority. An immediate assertion of doubt is no prerequisite for a judicial review as to the validity of the knock-down. 
 

IV. In the event that the purchase note is not completed in full or duly signed by the purchaser, bidding for a foal can be reopened according to the auction management’s best judgement. The first purchaser is liable for any possible deficiency or loss.

C.    Settlement, Payment and Transition of Property
I. Knock-down prices are net prices. The price payable by the purchaser to the seller/exhibitor is the knock-down price plus VAT (= purchase price). The VAT raised on the knockdown price depending on the seller’s status is 0 % (private sale), 9 % (flat-taxed farmer) or 19 % (business/ farmer opting for standard taxation). For each foal, the applicable tax rate is stated in the catalogue after the exhibitor’s name. The VAT rate is stated as declared by the exhibitor. The Holsteiner Verband Vermarktungs- und Auktions GmbH and the Hannoveraner Verband e.V.do not assume liability for this statement.
 

II. For agency services, the Holsteiner Verband Vermarktungs- und Auktions GmbH and the Hannoveraner Verband e.V. charge a buyer’s premium at a rate of 10 % of the knock-down price (net) plus 19% VAT, payable by the purchaser. 
 

III. The Holsteiner Verband Vermarktungs- und Auktions GmbH, Elmshorn and the Hannoveraner Verband e.V. have arranged obligatory insurance with the Vereinigte Tierversicherung for each foal (compare E) at a rate of 1.7 % of the gross price plus insurance tax (19 %), payable by the purchaser. The pregnancies/ rights to transfer of ownership of an unborn foal are not covered by insurance, neither are the foals born from these pregnancies. For these purchases, the basis for billing as shown under C IV. differs with respect to the insurance costs specified in the listing. 
 

IV. Against this background the total amount payable by the purchaser is computed as follows: 

„knock-down price“ (net)
+ VAT
(depending on seller’s taxation status,
0%, 9% oder 19%)

= subtotal 1 (= selling price)
+ buyer’s premium (auction fee) at a  
rate of 10% of the knock-down price(net)

+ VAT (19%)
on the buyer’s premium
(according to section 12 (2) UStG)

= subtotal 2 
subtotal 1 and 2 
(selling price + buyer’s premium)
= gross price
+ 1,7 % insurance premium
on gross price
+ insurance tax (19 %)
+ fixed fee for government veterinarian if foal is sold and shipped abroad 
    (incl. 19% VAT)

= TOTAL INVOICE AMOUNT

In the event a foal is sold and shipped abroad, a fixed fee of € 100 (incl. 19 % VAT) is charged for the government veterinarian. 
 

V. The total invoice amount is payable immediately after the knock-down and must be transferred to the Holsteiner Verband Vermarktungs- und Auktions GmbH’s UniCredit account or the Hannoveraner Verband e.V. account within five working days after the date of the auction. 
 

VI. The exhibitor remains the owner of the foal in question in agreement with section 449 BGB until the total invoice amount has been paid to the Holsteiner Verband Vermarktungs- und Auktions GmbH, Elmshorn, or the Hannoveraner Verband e.V..
 

VII. In the event that the purchaser does not pay the total invoice amount within five working days (including Saturday) after the day of the auction, the seller may withdraw from the purchase contract and sell the horse elsewhere. The first purchaser is liable for any loss and also liable to pay damages to the organizers. 
 

VIII. The exhibitor transfers their claim against the purchaser for payment of the selling price (knock-down price + VAT) to the organizers, the Holsteiner Verband Vermarktungs- und Auktions GmbH, Elmshorn, or else the Hannoveraner Verband e.V., for collection and settlement. In the event of delayed payment by the purchaser, the organizers do not advance funds to the exhibitor. In the event of delayed payment, the organizers are authorized to take action for payment of the selling price and the ancillary claims against the purchaser on behalf of the exhibitor without requiring the exhibitor’s special order. The costs for the judicial assertion of the claim are born by the exhibitor.
 

IX. The organizers of the auction sale draw attention to their reserved right to pay a commission to third parties causally involved in the conclusion of the purchase contract from the agency fee.

D.    Collecting the Foal and Passing of Risk
I. The buyer must collect the foals six month after the foal’s birth at the exhibitor’s seat, unless the parties have agreed otherwise in writing. Until the foal is collected, the exhibitor bears the costs for professional and ethical care and upkeep including veterinarian, farrier, and deworming. A later collection can be bindingly agreed upon between exhibitor and buyer, incurring local costs for the buyer. The date of collection has to be agreed upon between exhibitor and buyer. 
 

II. As a prerequisite for collection, the foal must be examined by a specialized veterinarian and certified free of defects. To this purpose, the exhibitor has to contact a veterinarian specialising in equines. As far as possible, the buyer should be present during the examination. In the event that the buyer is unable to attend, they must be immediately informed as to the results of the veterinary examination by submitting the veterinary certificate in writing. Moreover, the certificate must be sent to the organizers also. Failing this, the exhibitor does not receive payment. 
 

III. Upon declaration of the foal’s readiness for collection, risk passes to the buyer. In the event the buyer is a consumer, risk passes to the buyer upon delivery of the goods
 

IV. Should the foal’s readiness for collection be at issue, consult with the organizers’ competent staff.
 

V. Any foal declared ready for collection which is not immediately collected by the buyer and remains in the seller’s care, shall incur livery costs on a daily basis at local prices, payable to the seller by the buyer. These costs must be communicated to the buyer in advance. Each exhibitor is required to immediately inform the organizer and the buyer for example in the event the foal has been injured or suffered a damage. 
VI. In the event that a foal or a pregnancy /right to transfer of ownership of an unborn foal is jointly bought at auction by several persons, these are liable as joint debtor for claims from the auction purchase (selling price, collection, etc.) to the exhibitor/seller. Likewise, the buyers are entitled to their claims from the auction transaction as joint debtor, so the seller/exhibitor has the right of performance to any of the buyers. 
 

VII. Collection and Transfer of Risk for Pregnancies/ Right to Transfer of Ownership of an Unborn Foal:
With the knock-down, the buyer purchases the right to transfer of ownership of the foal born by the mare chosen by the buyer. The foal is to be collected and the ownership transferred at the mare owner’s farm six month after the foal’s birth. For the period until the foal is collected, the buyer pays € 200 per month in upkeep for the mare and, after the possible birth of the foal, the mare and the foal. In the event the mare has an abortion or no viable foal is born, the duty of payment for upkeep ends with the month of this event. Any month or part thereof must be paid in full. Monthly payment must be transferred by the buyer to the seller’s account (to be communicated by the organizers) in advance by the third working day every month. 
 

E.    Insurance
For all foals to be auctioned, with the exception of the pregnancies/ rights to transfer of ownership of an unborn foal, the Holsteiner Verband Vermarktungs- und Auktions GmbH, Elmshorn, or else the Hannoveraner Verband e.V. have taken out obligatory insurance with Vereinigte Tierversicherung on the following terms: 
1. Insurance coverage takes effect with the knock down. 
2. Insurance coverage expires with delivery to the first buyer’s stable/young stock livery stable, at the latest on 31 December 2023.
3. Shipping to the first buyer’s stable is covered within this period.  
4. The pay-out in case of damage is 80 % of the particular insurance sum (up to a maximum of € 50,000), minus possible utilization proceeds. In the event of damage or loss, the Holsteiner Verband Vermarktungs- und Auktions GmbH/ Hannoveraner Verband e.V. and the insurance company VTV must be notified without delay. 
5. For detailed terms and conditions we refer to the information given by the VTV insurance company “Wichtige Informationen für Fohlen”.
 

F.    Liability and Limitation
I. The following features constitute the foal’s quality as agreed upon between buyer and exhibitor:
1. The information stated in the catalogue regarding pedigree and age, as well as to sex and colour. 
2. The physical constitution as documented by the auction veterinarian’s Clinical Examination Certificate stating the physical constitution at the time of the knock-down. Prospective buyers may review the Clinical Examination Certificate at the auction vet’s. Beyond that, no written or verbal statements by the veterinarian or organizers’ agents shall be considered part of the agreement on quality. 

II. As to pregnancies/ right to transfer of ownership of an unborn foal, buyer and exhibitor agree upon the following qualities:     
1. The information on pedigree stated in the catalogue.

III. Any warranty or liability claims of the buyer arising from the auction sale must be submitted to the exhibitor as seller. 

IV. Liability for deficiencies or other damages after passing of risk is limited to two years in the event the seller is an businessperson/ entrepreneur (section 14 BGB) and the purchaser a consumer (section 13 BGB) and to one year in any other case.

V. The limitation period listed above does not apply 
in the event of damages of life, body or health resulting from negligent breach of duty by the seller or the Holsteiner Verband Vermarktungs- und Auktions GmbH, Elmshorn, or the Hannoveraner Verband e.V. or wilful or negligent breach of duty by a legal representative or vicarious agent of the seller, the Holsteiner Verband Vermarktungs- und Auktions GmbH, Elmshorn or the Hannoveraner Verband e.V. In this case, the legal regulations apply.
Moreover, the limitation period does not apply in the event of other damages resulting from gross negligent breach of duty by the seller, the Holsteiner Verband Vermarktungs- und Auktions GmbH, Elmshorn, or the Hannoveraner Verband e.V. or wilful or gross negligent breach of duty by a legal representative or vicarious agent of the seller, the Holsteiner Verband Vermarktungs- und Auktions GmbH, Elmshorn or the Hannoveraner Verband e.V..
 

G.    Changes, Applicable Law, Place of Jurisdiction, Severability Clause

I. Holsteiner Verband Vermarktungs- und Auktions GmbH, Elmshorn, Hannoveraner Verband e.V., and auctioneer reserve the right to alter the event‘s proceedings and schedule. Changes will be announced in due time. 
 

II. German Law shall apply under exclusion of the United Nations Convention on Contracts for the International Sale of Goods (GISG).
 

III. Place of jurisdiction shall be the organizers‘ registered seat (Holsteiner Verband Vermarktungs- und Auktions GmbH, Elmshorn; Hannoveraner Verband e.V.: Verden) provided that the purchaser is a merchant, a legal entity governed by public law or specialized agency subject to public law or the purchaser has no place of general jurisdiction in Germany.
 

IV. In the event that any of the conditions stated above should become partially or entirely void, this shall not affect any of the other conditions.
 

In case of doubt, the German version of the conditons of sale is given priority to the English translation.

Important Consumer information on Contracts for the Sale of Goods from 1 January 2022

Since 01 January 2022 new provisions for the sale of goods apply for contracts between merchants and consumers under sections 474-479 BGB.

These consumer-protecting provisions do not apply for this auction under section 474 subsect. 2 clause 2 BGB.

This applies regardless whether you are buying from a consumer or a merchant. 

Accordingly the special provisions do not apply for used goods sold through a publicly accessible auction (section 312g subsection 2 No: 10 BGB), if clear and comprehensive information that the provisions of this subtitle (sections 474-479) do not apply is made easily available to the consumer.  

The horses offered at this event are animals which have been separated from their dams for some time now. As a result, they have undergone an independent development over a longer period and have been sexually mature for quite some time. Regardless of their ridden status and use for breeding they are thus considered as “used” in the sense of the law (BGH, decision from 09 October 2019 – VIII ZR 240/18)

Horses are not things. They are protected by special laws and regulations. They are governed by the provisions that apply to things, except insofar as otherwise provided, section 90a BGB. At this event horses are not sold by way of an execution of judgement, compare section 241a subsection 1 part I BGB. This means that provisions applicable to goods like section 474 subsection 2 clause 2 BGB can be applied to them as well.

The procedure used at this event is a method of sale where goods are offered by merchants to consumers, who are given the possibility to attend the event in person. The offered goods are sold through a transparent, competitive bidding procedure carried out by an auctioneer where the successful bidder is obliged to purchase the goods. This means it is a publicly accessible auction, compare section 312g subsection 2 No. 10.

Special provisions favouring the consumer like shifting of the burden of proof in case of deficiencies (section 477 BGB), negative agreements on quality (section 476 subsection 1 BGB), withdrawal and damages (section 475d BGB) and limitation period (sections 475e subsection 3, 476 subsection 2 BGB) do not apply for this event.

As a matter of course, the general provisions on warranty for defects under sections 434, 435, 437 and following BGB remain unaffected. On this topic please take note of the modifications under our general terms and conditions. 

This means:

1. Shifting of the Burden of Proof
Should you notice a material defect, for example an injury or lameness in the horse within a year of the conclusion of the sales contract, under the convention on contracts for the sales of consumer goods the seller would have to provide proof that the defect did not exist when the risk was passed.  

This does not apply to contracts concluded at this event!

You have the burden of proof that a material defect was already in existence at the time of passing of risk. 

2. Negative Agreement on Quality
Possible deficiencies in a horse will be documented by the pre-purchase veterinary examination on site.  

When selling consumer goods, the seller has to specifically inform you on any material defects under section 434 subsection 3 BGB and a deviation from the objective quality and condition must be separately agreed on in the contract. 

Material defects in the sense of section 434 subsection 3 BGB are objective and factual, being of such a condition as to render the purchased object unsuitable for the normally intended use, or to deviate negatively from the usual condition and quality you may expect. 

This particular obligation to communicate information does not apply for this event! 

The veterinary pre-purchase certificates can be viewed by any person in the auction office and on the corresponding website and are an integral part of the contract under the general terms and conditions. You may consult with your own veterinarian to have the stated findings evaluated and interpreted. Risks and deficiencies resulting from the statements of the veterinary certificate are accepted by you.   

As to these deficiencies you cannot claim warranty for defects, and there is no need to further communicate special information. 
 

3. Withdrawal and Compensation 
Special provisions for withdrawal and compensation for damages apply to the purchase of consumer goods. 

In particular, when buying consumer goods, you just have to notify the seller of the defect without having to specify a period of time to remedy the deficiencies in order to be then able to withdraw.

Moreover, in the event a defect becomes apparent in spite of supplementary performance on the merchant’s side, as a buyer of consumer goods you have for example the right to withdraw regardless whether it is the old defect or a new one.  

This does not apply to contracts concluded today!

To invoke withdrawal and compensation in place of performance you have to specify a period of time to remedy the deficiencies. 

The seller has a right to remedy the defect. Whether or not the remediation of the defect has failed must be decided on an individual basis. Remediation is deemed to have failed after two unsuccessful attempts to remedy. 
 

4. Period of Limitation
Normally when buying consumer goods, the period of limitation for warranty claims does not expire before the end of four months after the time the defect has become apparent for the first time. 

In the event a deficiency becomes apparent shortly before the period of limitation expires, you have four month to notify the seller of the defect, regardless of the fact that in the meantime the period of limitation might have expired. 

This relief regarding the period of limitation does not apply for contracts concluded at this event!

Even when you notice defects shortly before the period of limitation expires, you must notify us within the period of limitation.