A. General
The „Hannoveraner Verband e. V.", Lindhooper Straße 92, D-27283 Verden (Aller) is the organizer of the auction and sells the foals described in the catalogue in its own name on vendor’s account (commission business).

The purchase contracts under this conditions shall be governed by German law. Place of jurisdiction shall be Verden/Aller.

B. The Auction
The auction is a public event, lead by a public appointed and sworn auctioneer. ickets are available for everybody (as long as stocks last).
Since the risk of material defects is unpredictable for animals from birth, the foals will be auctioned off as second hand goods. The regulations of selling consumer goods (§§ 474 ff German Civil Code) cannot be applied.
Provided the buyer is a consumer according to § 13 German Civil Code, the foals will be sold as „new“ and instead of the regulation mentioned under paragraph E, b – h, the regulation as laid down under E, i, will apply.
The foals will be offered for sale in EURO. Bidding will begin at Euro 2.500,00. Only bids of at least Euro 200,00 will be accepted.
Should any doubts arise as to the validity of the knock-down price, this should be claimed at once, and the offer for sale can be taken up again. It is also allowed to announce doubts about the validity of the knock-down if the purchase note has already been signed, latest after the last foal of the auction was knocked-down. Only bidders, the auctioneer or the auction management are allowed to raise an objection. A commission consisting of the managing director of the “Hannoveraner Verband e. V.”, the auction manager or the auctioneer can decide on all objections. Only unanimous decisions can reverse an accepted bid.
If the buyer does not sign the purchase note or makes known during the auction that he will not take the foal, the commission can decide to put it up for the auction again. The first buyer is liable to the Hanoverian Association and to the vendor for any possible reduction in price.

C. Settlement and Payment
For its activity as a commission agent, the Hanoverian Association raises a commission fee. The amount to be paid depends on the knock-down price. Additional handling fees and taxes will be charged as well. The payment is due immediately upon adjudication.
The payment has to be effected in the auctioneer’s office, either in cash or by means of a cheque. Foreign customers are allowed to pay cash only or in accordance with a prior agreement or another guarantee of payment, as agreed upon with the Hanoverian Association before. Cheque collection fees and interests are at remitter’s (buyer’s) charge. The buyer’s liability is definitively discharged after final settlement of the cheque. Stop payment orders against issued cheques are prohibited. The account will be rendered as follows:

	Knock-down price
+	6 % commission
	Net amount
+	VAT (acc. to § 12 [2] of the German turnover law = 7 %) settled price + 1 % insurance (plus insurance tax)
=	final balance amount

The commission agent (Hanoverian Association) insures all auction foals before. The new owners are the legal successors of each insurance contract after the lot went down. The insurance premium is settled with the auction invoice. According to § 448 BGB (German Civil Code), the horses remain property of the sellers until full payment is effected. The “Hannoveraner Verband e. V.“ is entitled to accept payment and to sue, in case of non-payment, the purchaser for the payment of the purchase price and all additional fees and expenses.

D. Sales Standards (Characteristics of the offered foals)
The following sales standards describe the necessary characteristics required for all auction foals. These characteristics are subject to buyer’s legal rights. Details about the pedigree, sex, age, colour and – if available – special performances of the ancestors are the only characteristics fixed in this agreement. Photos and/or short statements published in the auction catalogue are only based on first impressions of the foal at the press date of the brochure. Neither the Hanoverian Association nor the exhibitor makes any assurance or evaluation in the sense of a guarantee of special qualities.
Current health problems or considerable changes of the catalogue descriptions will be announced by the auctioneer in the course of the auction.
The Hanoverian Association does not determine any additional characteristics. They are not subject of the contract.

E. Liability
All claims have to be directed to the Hanoverian Association. The Hanoverian Association is the commission agent and will settle all claims on exhibitor’s behalf (principal). The Hanoverian Association assumes the liability for the characteristics as agreed upon before in the sales conditions (section D) and in accordance with the legal regulations, however, with the following restrictions:
a) Claims for later fulfillment or replacement are prohibited. Amendments are restricted to the report of the Veterinarian University in Hanover, stating that the healing of a disease is not to be expected within a period of six months of treatment. This report is binding for both parties.
b) Claims for reduction are prohibited.
c) Claims to withdraw from the contract: If – at the time of transition of liability – the foal’s typical characteristics – as mentioned in the contract – are different from the ones the foal actually has, the Hanoverian Association is liable and has to accept a return of the foal and a repayment of the auction sales price.
d) Claims for refunds: These claims are restricted to transport costs for the transport of the foal from the auction premises to the buyer’s stable (within Germany only), regular costs for boarding and food, veterinary examinations, costs for the farrier and possible costs for necessary veterinary treatments in case of illness or injury. The seller is not liable for additional costs and compensations, replacements or loss of fortune, neither does he accept any training fees.
e) Period of notification: Claims for damages have to be directed to the Hanoverian Association latest within four weeks after transition of liability. The seller has to be informed about the faults “wind cribbing” and “head weaving” immediately, latest within two weeks after transition of liability.
f) The Hanoverian Association and the exhibitor are only liable for the characteristics agreed upon. The foals are sold as inspected on the day of the auction. Should the foal stay with the mare after the acceptance of the bid, it will be considered as being healthy upon transition of liability.
g) The Hanoverian Association is not liable for the medical evidences and diagnoses of the veterinarians who have examined the foals before the auction.
h) Buyer’s claims for material defects are limited to a period of eight weeks following the transition of liability.
i) Different to the regulations mentioned under b – h, the following applies for end users: The legal claims for damages will be valid.
Buyer’s claims for compensation are excluded (compensation with service, compensation instead of service and replacements for expenditure). Exepted from this are buyer’s claims for damages, resulting out of an impairment of life, body or health if the seller is responsible for the breach of duty and the liability for other damages, based on intention or gross negligence of the seller, his legal representative or his vicarious agent.
The claims loose validity two years after transition of liability.

F. Evaluations by the independent veterinarians - No guaranteed constitution
Apart from determining the basic characteristics, the Hanoverian Association sees to it that all foals offered for sale are examined by independent veterinarians prior to the auction. The exact details and the results of these examinations are fixed in a written report.
This written report is at veterinarians’ own responsibility and liability; neither the Hanoverian Association nor the exhibitor assumes any liability for these reports and the corresponding evaluations.

G. Removal and Transition of Liability
The buyer has to collect the foal from the vendor latest six months after date of birth at the exhibitor’s domicile. However, should buyer and exhibitor agree on an earlier date, this is also permitted. The exhibitor bears the risk and the costs until the foal is weaned, including costs for the veterinarian and the farrier. Buyer and exhibitor have to agree on a removal date. At buyer’s special request, the exhibitor is obliged to care for the foal until October 15, 2007, however, at buyer’s risk and liability.

H. Alterations of Arrangements
The Hanoverian Association reserves the right to alter the auction arrangements or the regulations stipulated in this contract. In individual cases, different arrangements between single exhibitors and buyers are permitted. If any term or condition of these auction regulations is null and void or will become null and void, then all other terms and conditions shall remain in full force and effect. In fact of not being operative, the inoperative regulation should be exchanged against one which comes very close to the contract’s purpose.
In case of doubt, the German version of the Conditions of Sale will be valid.

1. General
 The “Hannoveraner Verband e. V.”, Lindhooper Straße 92, D-27283 Verden (Aller), is the organizer of the auction. It sells the horses described in the catalogue in its own name on ­account of the vendor (commission business) under the direction of the auctioneer.

2. The auction
2.1 The auction is a public event, conducted by a public appointed and sworn auctioneer. Tickets are available for everybody (as long as stocks last). According to legal terminology, all horses auctioned-off are second-hand goods. The regulations of selling consumer goods (§ 474 ff. German Civil Code) cannot be applied.
2.2 Before the auction, the horses to be sold will be shown in hand. The horses will be offered for sale in EURO. Bidding will begin at Euro 4,000. Only bids of at least Euro 300 will be accepted.
2.3 In case any doubts should arise as to the validity of the knock-down, this should be claimed at once, and the offer for sale can be taken up again. It is also allowed to announce doubts about the validity of the knock-down if the purchase note has already been signed, latest after the last horse was knocked-down. However, only bidders of the horse in question, the auctioneer or the auction manager are allowed to announce any doubts. A commission, consisting of the managing director of the “Hannoveraner Verband e. V.”, the auction manager or the auctioneer can decide about the announced doubts. They are the only ones to decide unanimously whether the offer is still valid or not.
2.4 If the purchaser does not sign the purchase note or makes known during the auction that he will not take the horse, the commission can decide to put it up for the auction again. The first buyer is liable to the Hanoverian Society and to the vendor for any possible reduction in price.

3. Settlement and payment
3.1  For its activity as a commission agent, the Hanoverian Society raises a commission fee. The amount to be paid depends on the knock-down price. Additional handling fees and taxes will be charged as well. The payment is due immediately upon adjudication. The payment has to be effected in the auctioneer’s office either in cash or by means of a  bank-confirmed cheque Cheque collection fees or interest rates have to be paid by the purchaser. Foreign customers have to pay the fee for official veterinarian services.
3.2  The account will be rendered as follows:

	Knock-down price
+	6 % commission
=	Net amount
+	VAT (acc. to § 12 [2] of the German turnover law = 7 %)
=	settled price
+	1 % insurance plus insurance tax (19%)
=	final balance amount

3.3  All auction horses are insured by Hannoveraner Verband e. V. The new owner is the legal successor of each insurance contract. The insurance premium is settled up with the auction statement.
3.4  According to § 448 BGB (German Civil Code), the horses remain property of the vendors unless full payment of the final balance amount is effected. The “Hannoveraner Verband e.V.“ is entitled to accept payment and to sue, in case of non-payment, the purchaser for the payment of the purchase price.

4. Characteristics of the horses
4.1  The auction brochure features the characteristics of the horses including photo and details regarding sex, colour, date of birth, height, 3-generation pedigree, identification number and – if available – own and/or family show or tournament successes. Pregnant mares are announced with the last date of insemination/coverage and the name of the herefore used stallion.
4.2  Current health problems or considerable changes of the horse’s main features are mentioned in a final report called “Latest News” and/or announced by the auctioneer prior to the auction.

5. Liability of the Hanoverian Society
5.1  The Hanoverian Society will assume the liability for material defects relating to the characteristics mentioned under section 4, in accordance with the legal regulations, however, with the following ­restrictions:
5.2 Claims for later fulfilment are prohibited. Claims for replacement are restricted to the report of the Veterinarian University in Hanover, ­stating that healing of a disease is not to be expected within a period of six months of treatment. This report is binding for both parties.
5.3 The claim for reduction is prohibited.
5.4 Claims to withdraw from the contract: If – at the time of transition of liability - the horse’s constitution differs considerably from the one mentioned in the contract, the vendor of the horse will be liable and has to accept a return of the horse and a repayment of the auction sales price.
5.5 All claims for refunds are restricted to the following rights: refunding the costs for the transport of the horse from the auction premises to the buyer’s stable (within Germany only), regular costs for boarding and food, the costs for the farrier, for veterinary inspections and treatments.
5.6 All claims for faults have to be directed to the “Hannoveraner Verband e.V.”. They will settle the claims on exhibitor’s behalf.
5.7 The liability for faults is limited to a period of time of one year for end users (as per § 13 German Civil Code). For sales to buyers that are no end users as per the mentioned law, all claims for material defects are in lapse within eight weeks after transition of liability.
5.8 The Hanoverian Society and the vendor do not assume any liability for other characteristics than the ones stipulated in the contract. The horses are sold as inspected by the buyer, excluding any liability for material defects. No liability will be assumed for the horse’s status of health. Apart from that, the Hanoverian Society is not liable for the accuracy of the veterinarian inspections and the corresponding evaluations of the independent veterinarians.
5.9 Buyer’s claims for damages, resulting out of an impairment of life, body or health are excluded if the seller is responsible for the breach of duty and if he is liable for other damages, based on intention or gross negligence of the seller, his legal representative or his vicarious agent.

6. Status of health – no guaranteed constitution
6.1  Prior to the auction, all horses put up for the auction are examined by the veterinarian in great detail. 12 x-rays will be made of each horse: lateral views (1. – 3. Phalanx) of the front and back toes. Special examination of the front feet (Naviculabor bone – Oxspring method). The hocks are x-rayed at two angles on the same plane (approx. 115°, knee 45°). The results of these examinations are written down in a report.
6.2  In addition, the independent veterinarians Dr. Gerd Brunken and Dr. Alexander Merz will evaluate the x-rays together. A written report is available about each horse. This report includes the evaluation of the x-rays, the experiences of both veterinarians with comparable x-ray results in the past, the clinical state of health of the horse in the past, especially also during the auction training, and the general impression of the horse. According to this, the report issued by both independent veterinarians Dr. Brunken and Dr. Merz, is not part of the characteristics as mentioned under section 4, but only a noncommittal information for potential buyers. Potential buyers are requested to consult both veterinarians regarding the issued report, with or without their independent veterinarian.
6.3  The report about the first examination, the x-rays and the x-ray report are at all prospective customers’ disposal, at the disposal of their representatives or their veterinarians. They may acknowledge, analyse and check the information on their own responsibility prior to the auction.
6.4  The results of the veterinary examinations, their statements and evaluations are independent services of both veterinarians. They are no characteristic as mentioned under section 4. and no contractual promise by the Hanoverian Society or the vendor. The veterinarians are not the servants of the Hanoverian Society, but independently working experts.

7. Removal and transition of liability
7.1  The liability passes on to the purchaser after the lot was knocked-down. This is also the time the ownership changes, even if the horse remains – for the time being – in the custody of the auctioneers. This is also valid if the vendor remains the owner under reservation.
7.2 The Hanoverian Society is entitled to accept payments and – if necessary – to insist on buyer’s settlement of obligations and related costs. Alternatively, the Society is entitled to transfer all rights to the exhibitor with immediate effect.

8. Alterations of arrangements, governing law,
place of jurisdiction and severability clause
8.1  The Hanoverian Society reserves the right to alter the auction arrangements or the regulations stipulated in this contract.
8.2 German governing law and the special version of these conditions of sale will apply for this auction.
8.3  Place of fulfilment and jurisdiction is Verden.
8.4  Should certain regulations or parts of the regulations mentioned in this contract become inoperative, the other arrangements of this contract will not be effected. In fact of not being operative, the inoperative regulation should be exchanged against one which comes very close to the contract’s purpose.
8.5 In case of doubt, the German version of the Conditions of Sale will be valid.