On Thu, 13 Jun 2019 14:07:42 -0000 (UTC), Jethro_uk
<
jeth...@hotmailbin.com> wrote:
>It will all depend on who the contract is with, surely ? If I give money
>via a 3d party to a business that fails to deliver, then where does the
>3rd parties liability stop and the failing businesses start ?
>
>Don't we have consumer credit laws about this ?
That's what I'm asking for :-)
>I'm hazarding a guess you are asking in the abstract, rather than
>referring to an ongoing case trying to decide exactly that.
I have a specific case in mind. I won't name names, but the facts can
be summarised fairly simply. A business used crowdfunding as a means
to raise the finance to produce consumer products (alongside its
normal range which were financed the normal way, from internal
investment). Some of those crowdfunded products were produced, and
there were no issues with them. However, the business subsequently
collapsed, for reasons which (AFAIK) were not directly related to any
problem with the crowdfunding itself. But this has left later
crowfunders without their goods, and they would very much like to get
back at least some of what they paid (accepting that, as creditors,
they may only get a partial refund as it depends on how much blood the
liquidators can squeeze out of that particular stone).
The question, though, is whether crowdfunders are actually entitled to
be treated as creditors. If they'd simply placed a pre-order for a
forthcoming product, then they would be, as they would have a
contractual entitlement to that product or, failing that, to have the
contract rescinded and their money returned. But crowdfunding isn't
just an order placed in advance, it's a form of investment. And
investors aren't creditors, and aren't entitled to anything when a
company goes belly-up.
So I was wondering if there is any pubished case law, or guidance from
an authoritative body, on the matter.
Mark