Law & Safety

Bilingual Horse Sale Agreement: Choice of Law, Jurisdiction, and the CISG Trap

When selling a horse across borders, three key clauses determine the outcome of any future dispute: which law applies, which court has jurisdiction, and which language version is authoritative. Plus, there's one rule that's almost always overlooked.

Equidara editorial team · 6 October 2026 · 4 min read

Imagine your horse is headed to Spain, Poland, or the Netherlands. You draw up a bilingual contract, usually in German and English, and both parties sign, feeling satisfied. Disputes rarely arise over the price. Instead, arguments often center on whose law applies when something goes wrong six months down the line.

Which Law Applies If Nothing Is Agreed Upon

Within the EU, the Rome I Regulation dictates which law applies to a contract. The fundamental principle, outlined in Article 3, states that parties are free to choose the applicable law themselves, either expressly or in a way that is clearly demonstrated by the terms of the contract.

If no choice is made, Article 4 comes into play. For contracts of sale concerning movable goods, the law of the country where the seller has their habitual residence will apply. So, if a German breeder sells a horse to Spain, German law would apply unless otherwise agreed.

While this is often advantageous for the German party, it shouldn't be left to chance. The concept of 'habitual residence' can be open to interpretation in individual cases, and if you're buying from a dealer abroad, the situation is reversed.

Therefore, a clause explicitly stating the chosen law is always preferable to silence. Avoid hybrid clauses that invoke different legal systems for specific issues; they tend to create more problems than they solve.

The Trap: The CISG

The United Nations Convention on Contracts for the International Sale of Goods, or CISG for short, applies to sale contracts between parties from different contracting states. Germany and most European countries are signatories. It applies automatically and, within its scope, supersedes national sales law.

This is precisely what bilingual contracts most frequently overlook. If you simply state 'German law applies,' you have not excluded the CISG, because the CISG is considered part of German law. An explicit clause is required, such as: 'The application of the United Nations Convention on Contracts for the International Sale of Goods (CISG) is excluded.'

Whether excluding the CISG is a wise move depends on the specific case. The CISG has its own rules regarding notification of defects, time limits, and remedies, which differ from what you might be accustomed to, including an obligation to notify defects within a reasonable period. The crucial point is to address this question consciously, rather than overlooking it.

Note: The CISG does not apply to purchases made by consumers for personal use if the seller could have recognized this.

Jurisdiction

Under the Brussels I-a Regulation, parties can agree on a competent court; this is governed by Article 25. Absent such an agreement, legal action is generally brought in the defendant's place of residence.

For consumer contracts, both options for choice of jurisdiction are restricted. If a business sells to a consumer and directs its activities towards the consumer's country, the consumer can generally sue in their country of residence, and any agreement to the contrary regarding jurisdiction is only effective to a limited extent. This cannot be negotiated away.

From a practical perspective, it's important to consider: a German jurisdiction is of little use if the defendant's assets are located in Portugal. Enforcement will take place where there are assets to seize. Within the EU, this is manageable thanks to the regulation, but it still costs time and money.

Which Language Version Is Authoritative

A bilingual contract needs a clause specifying which version is authoritative in case of doubt. Without it, parties will additionally dispute translation issues, and legal terms rarely have a precise equivalent.

Common and practical advice: The version in the language of the chosen law should be authoritative. So, if you choose German law, you declare the German version binding and the other an informational translation.

This is reasonable for the other party if the translation is accurate. It becomes unreasonable if someone signs a version they don't understand and that hasn't been explained to them.

What Else Belongs in an International Contract

Currency and Payment Method. Which currency, to which account, who bears fees and exchange rate risk.
Transport. Who arranges it, who pays, when does the risk transfer. The transfer of risk upon handover to the transporter is common, but it can be arranged differently.
Documents. Original equine passport, animal health certificate, registration in TRACES, ownership certificate, and, if applicable, breeding certificate.
Pre-purchase Veterinary Examination. Who commissions it, what scope, what deadline, what consequences for findings.
Retention of Title, if not fully paid upon handover.

For high purchase prices or buyers outside the EU, legal advice is advisable, especially concerning customs, import regulations, and how a judgment would be enforced in the destination country.

Common questions

Which law applies to an international horse sale?

The law chosen by the parties (Art. 3 Rome I Regulation). Without a choice, for sales contracts, the law of the state where the seller has their habitual residence applies (Art. 4). A clear clause is better than leaving the question open.

Why must the CISG be explicitly excluded?

Because it automatically applies to cross-border sales and is considered part of German law. Therefore, simply stating 'German law applies' does not exclude it. A separate clause explicitly excluding the application of the CISG is necessary if you wish to do so.

Can I freely agree on jurisdiction?

Between businesses, largely yes (Art. 25 Brussels I-a). For consumer contracts, the choice is restricted: if a business directs its activities towards the consumer's country, the consumer can generally sue in their country of residence.

Which language version is authoritative in a bilingual contract?

The one you designate. It's common for the version in the language of the chosen law to be authoritative; the other then serves as an informational translation. Without such a clause, translation issues will also be disputed in case of conflict.

What else should be included in an international sales contract?

Currency and payment method including fees, transport arrangements and transfer of risk, documents (equine passport, animal health certificate, TRACES), the pre-purchase veterinary examination with deadlines and consequences, and retention of title if not fully paid upon handover.

Sources

Written by Equidara editorial team. Last checked: 6 October 2026.