Legal Liability on Failed Projects
  • consultant
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    Legal Liability on Failed Projects

    by consultant » Sun Oct 25, 2020 1:05 am

    I read this article, though from back in 2013. Essentially the takeaway is, unless you're a corporation you *could* have legal exposure if your project fails. I assume that is predicated on the plaintiff's ability that the failure involved something like fraud or negligence, or lack of "good faith effort" so to speak.

    Has much changed since this article in 2013. The example basically describes that there was a good faith effort made but it failed basically due to incompetence, maybe some greed, etc. But it was not a scheme to try to defraud people for their money however the person still went bankrupt due to the lawsuits.

    https://www.inc.com/eric-markowitz/when ... -back.html (in case you want to read it.)

    I know the Kickstarter terms of service basically is intended to absolve them of any legal liability. But if the project fails and very little or no money can be returned in a reasonable amount of time (not sure what's reasonable), and you're not incorporated, are you potentially screwed (as the funded, not the funder)


  • consultant
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    Re: Legal Liability on Failed Projects

    by consultant » Mon Nov 16, 2020 11:36 pm

    bump
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    nomlinz
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    Re: Legal Liability on Failed Projects

    by nomlinz » Tue Nov 24, 2020 9:17 am

    Very interesting article. Although is a bit old, most things stayed the same.
    Kickstarter won't refund the money from a failed project that got fully funded.

    It's basically up to the creator. If it was actually an error in calculations or a fulfillment issue, honest creators will refund or look for solutions, but they most likely will communicate with their backers. No one wants a bad rep.

    Now, if it was a scam, there's little to nothing backers can do to get their money back, for which reason is very recommended that people do their research on creators and their past before investing their money.
    And of course is always good to remember: If it looks too good to be true, it probably is.
    Hi! I run the popular blog Crush Crowdfunding and have helped people successfully raise over $7 million on Kickstarter and Indiegogo. Get the proven step-by-step system to launch a successful crowdfunding campaign: http://bit.ly/crushcfhandbook
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    Imusta
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    Re: Legal Liability on Failed Projects

    by Imusta » Fri Apr 30, 2021 3:01 pm

    For me, it's unfortunate to hear that such projects failed. On the other hand, I think that such ones have many good reasons to be launched in public space. Everyone has the right to express their opinions and feelings. So even the law must respect this right of everyone. I think that in such a case you should contact the guys from weareecs.co.uk for help. I know a few friends of mine that got them to help in making their voices heard. In this way, they resolved a lot of problems and changed a lot of things. All is possible in this world!

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