Because of the ease of backing a rewards-based crowdfunding campaign via an online platform, it is easy to confuse crowdfunding with another online sale transaction, for example, buying a board game through Amazon. But crowdfunding has its own nuances and risks, and although the transaction is similar to a pre-order, it isn’t quite a pre-order!
The legalities in a crowdfunding transaction has direct consequences for backers. As backers, we have to be aware of the online platform’s own terms and conditions as well as contract law governing sales.
Let’s work together to seek greater clarity on the rights and responsibilities inherent in the crowdfunding transaction!
The key articles in this section are:
- Crowdfunding terminology: a legal minefield
- The transactions behind a crowdfunding process, when money exchanges hands, and when legal title is transferred
- Understanding a project creator’s obligations to backers
- Legal recourse in event that the project fails to deliver
- Right to a refund