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A horse bill of sale is a document that formalizes the change of ownership of a horse when it is sold or gifted. It serves to prevent disputes about ownership and provides clarity regarding the horse's lineage. For buyers, it serves as proof of legal purchase and payment, while for sellers, it confirms that the buyer is aware of the horse’s condition at the time of sale, limiting the seller’s liability for any post-purchase health issues. Essential elements to include in the bill of sale should be the details of the transaction, including the horse’s description, sale price, and conditions agreed upon by both parties.