Crowdfunding terminology: a potential legal minefield

The terminology used to describe the crowdfunding process can be a legal minefield. At first glance, it seems that words with limited legal bearing are used to describe crowdfunding transactions. The terminology is also emotive, meant to elicit a response from the backers. By developing its own terminology, the crowdfunding sector tries to distinguish itself…

Understanding a project creator’s obligations to backers

A project creator has obligations towards all backers who have pledged on his project. These obligations are evident during the funding campaign and post campaign. Key takeaways During the campaign, a project creator should make a good faith attempt when interacting with backers, and accurately describe the quality and quantity of the product offered. Post…

Understanding failed delivery and likely recourse options

As a backer, you need to be aware of what your options are in the event that the project creator fails to deliver your reward. These options are part of your legal recourse that you can pursue if you don’t receive your reward. If the crowdfunding transaction has tangible, commensurate rewards offered for pledges, it…