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Sale Contracts and Good Faith
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This entire site/page is good reading.  

Some highlights:

http://backersmanual.com Wrote:If the crowdfunding transaction has tangible, commensurate rewards offered for pledges, it is classified as a sale transaction and the project creator earns income or revenue from the transaction. The key difference between a crowdfunded transaction versus sale is that the legal transfer of rights and responsibilities over the product is in the future, because the product only ships at a much later date compared to when the money is taken.
http://backersmanual.com/2014/03/16/lega...o-deliver/

Another interesting section elaborates on "Good Faith"
http://backersmanual.com Wrote:Another pertinent clause in Kickstarter’s terms and conditions is:

“Project Creators agree to make a good faith attempt to fulfill each reward by its Estimated Delivery Date.”

Let’s first understand the definition of “good faith”, as from Wikipedia:

“In contract law, the implied covenant of good faith is a general presumption that the parties to a contract will deal with each other honestly and fairly, so as not to destroy the right of the other party or parties to receive the benefits of the contract.”

Because the contracting parties are the project creator and backer, and the contract is a sale, contract law applies. Backers have already fulfilled their part of the contract when the money exchanged hands at the end of the funding campaign. It is now up to the project creator to fulfill his part, in a good faith attempt.
http://backersmanual.com/2014/03/16/lega...o-deliver/
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