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A horse bill of sale is a document that outlines the ownership transfer of a horse after it is sold or gifted. It is beneficial in avoiding disputes over ownership or the horse's lineage. For buyers, it provides proof of purchase and payment, while for sellers, it proves the buyer's awareness of the horse's condition at the time of sale. The bill of sale also releases the seller from liability for the horse. Key details to include in the document are the parties involved, the horse's information, sale price, and signatures of both parties.