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A horse bill of sale is a document that facilitates the change of ownership of a horse during a sale or gift transfer. It serves to prevent disputes over ownership and addresses concerns about the horse's lineage. For buyers, it provides 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, protecting the seller from future liability for any health issues that arise post-sale. Key elements to include in a horse bill of sale should be detailed to ensure clarity and legal protection for both parties involved.