I bought some ladino clover seed from my local seed/feed store this week. When I opened the bag when I got home it has a musty and moldy smell and some of the seeds are clumped together like they have been wet. Do you think the seeds will be ok to plant and will they germinate or should I get some more seed somewhere else?

I suspect they were innoculated. Innoculation is a good thing for clover seed, and they should be fine. Try planting 25 or so in a damp paper towel and see how many germinate.

I don't know about moldy. Inoculated seed(or any seed really) should have been kept cool and dry. Sounds bad to me. They might work, but if it was me, I'd take them back.

That don't sound good, I'd at least contact them and let them know what you found. Chances are, they'll give you another bag and let you keep the old. I'd also look at the test date on the tag, sometimes they'll try to peddle old seed if they can.