Traditionally, business in the horse industry has been conducted on the basis of a handshake. However, written contracts are becoming more common in the purchase and sale of horses as well as the provision of services such as training, leasing, breeding and boarding. Depending upon the wording of the contract, written contracts can provide greater certainty as to the rights and obligations of all parties involved. Given the increasing use of contracts in the horse business, horse owners may find it useful to arm themselves with some basic knowledge of contract law. This article will discuss the basic elements of a contract, provide readers with some tips on drafting a contract for the purchase and sale of a horse and finally, discuss one of the most commonly used contracts in the horse business, the breeding contract.