Often, a crowdfunding transaction requires that the funders (the people contributing money) agree to certain legal terms or disclaimers.
In some cases a sponsoring organization -- such as a local economic development commission -- will agree to support a crowdfunding project only on the condition that the organization be insulated from liability.
Video Record Forces Deliberation
One way to confirm that funders understand terms and waive liability is to record them saying so in a video. Videos are easy to obtain from individual funders because webcams have become so common on PCs, tablets and smartphones.
Well-scripted webcam agreements can reduce risk and misunderstanding. They reinforce legal warnings.
Example:
In some cases a sponsoring organization -- such as a local economic development commission -- will agree to support a crowdfunding project only on the condition that the organization be insulated from liability.
Video Record Forces Deliberation
One way to confirm that funders understand terms and waive liability is to record them saying so in a video. Videos are easy to obtain from individual funders because webcams have become so common on PCs, tablets and smartphones.
Well-scripted webcam agreements can reduce risk and misunderstanding. They reinforce legal warnings.
Example:
The organizer or intermediary behind a crowdfunding event would be wise to keep thorough records, such as each video like this, to establish what was disclosed to each individual funder and what they agreed to.
A webcam record can demonstrate -- better than a handwritten signature on paper and better than a mouseclick -- that an unsophisticated person has deliberated about and agreed to a serious transaction.
I have published more on webcam legal signatures.
--Benjamin Wright
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