Sales of goods act - digital artworks/assets

MRET

I think this is something that will affect us all in the near future !

I purchased a Damien Hirst digital NFT Empress artwork  in February 2022 for $3500 USD (£2800) through the Heni marketplace

• Technically its not an actually NFT,
• as the digital item is stored over a 3 year period as a digital receipt
• the physical artwork must be claimed by 5thFebruary 2025 otherwise we lose the right to the piece.  
• Upon claiming the physical artwork, I must pay 20% VAT which is £700

Damien Hirst/Heni has sold 3,300 of this specific artwork and in 4 other variations.

In total approx. 16,000 artworks sold @ $3500 USD , A total approx. of $55million

 Current market value of the artwork on Opensea market place = Approx 0.3ETH/£900 ( loss of approx. £2000)  

My Question – the digital receipt has been held in Heni’s vault and I have not moved it to my digital Wallet since making payment. If the physical artwork is not the value it claims at the time of claiming, would that be classed as “not fit for purpose ?”

Do you think I have any rights to ask for a refund or even an exchange ?

HENI Terms and Conditions

Section3 - no.6 : By initiating the purchase of an NFT, you agree that you are submitting a binding offer to purchase the NFT from us. Your order is accepted and confirmed once the purchase is complete and we notify you that the purchase is complete. You acknowledge that your purchase of the NFT cannot be refunded.

I look forward to hearing your thoughts.

On-the-coast

Answer: No
and I very much doubt this will apply to me in the future!

flaneurs_lobster

MRET said:

I think this is something that will affect us all in the near future !

No it won't.

user1977

The terms (assuming they're the same as those on this page) also state that New York state law applies to the contract, so you'd be best to ask somewhere which knows about that - we only really deal with UK consumer rights here.

flaneurs_lobster

An NFT not being "fit for purpose"? 

I'd love to know what you think the purpose is that the NFT is not fit for. 

What you mean is you've lost money on a high risk punt and now you're looking for get out clauses.

Good luck.

Alderbank

MRET said:

I think this is something that will affect us all in the near future !

I purchased a Damien Hirst digital NFT Empress artwork  in February 2022 for $3500 USD (£2800) through the Heni marketplace

• Technically its not an actually NFT,
• as the digital item is stored over a 3 year period as a digital receipt
• the physical artwork must be claimed by 5thFebruary 2025 otherwise we lose the right to the piece.  
• Upon claiming the physical artwork, I must pay 20% VAT which is £700

Damien Hirst/Heni has sold 3,300 of this specific artwork and in 4 other variations.

In total approx. 16,000 artworks sold @ $3500 USD , A total approx. of $55million

 Current market value of the artwork on Opensea market place = Approx 0.3ETH/£900 ( loss of approx. £2000)  

My Question – the digital receipt has been held in Heni’s vault and I have not moved it to my digital Wallet since making payment. If the physical artwork is not the value it claims at the time of claiming, would that be classed as “not fit for purpose ?”

Do you think I have any rights to ask for a refund or even an exchange ?

HENI Terms and Conditions

Section3 - no.6 : By initiating the purchase of an NFT, you agree that you are submitting a binding offer to purchase the NFT from us. Your order is accepted and confirmed once the purchase is complete and we notify you that the purchase is complete. You acknowledge that your purchase of the NFT cannot be refunded.

I look forward to hearing your thoughts.

You ask 'Would this artwork be 'not fit for purpose'?

First question, what is the purpose of a physical piece of artwork?
Second question, in what way does it not meet that stated purpose?

If the purpose of a work of art is to go up in value and make lots of money for its owner, you seem to have a claim.

If the purpose of a work of art is to be 'a thing of beauty and a joy forever', perhaps less so (I have never been an admirer of Hirst's work).

Aylesbury_Duck

I can't foresee how this will affect me in future, but time will tell.

If I've understood you correctly, you've spent £2800 to own a digital copy of some artwork and to get the right to purchase the actual physical artwork,  but to do the latter you have to spend another £700 in the next month or you've lost everything you've paid for.  If you spend the £700 you can sell the physical artwork for £900.

Seems sensible to spend the £700 and then sell the artwork for £900, at least limiting your loss to £2600.  Or hold onto the art in the hope it gains in value to at least £3500 and then sell it.  What's the prospect of it gaining four times its current value in the coming years?  It sounds morbid, but I'd have thought the best chance of that is if the artist dies, but given he's only 59, I hope he has many decades ahead of him.

Surely this is like any investment purchase in that the value may rise and fall over time?  Unless the contract guarantees it will retain at least its original price, of course.  Does it?

flaneurs_lobster

Alderbank said:

First question, what is the purpose of a physical piece of artwork?

Good question, however the "artwork" being discussed here does not even have the benefit of physical form.

born_again

MRET said:

I think this is something that will affect us all in the near future !

I purchased a Damien Hirst digital NFT Empress artwork  in February 2022 for $3500 USD (£2800) through the Heni marketplace

• Technically its not an actually NFT,
• as the digital item is stored over a 3 year period as a digital receipt
• the physical artwork must be claimed by 5thFebruary 2025 otherwise we lose the right to the piece.  
• Upon claiming the physical artwork, I must pay 20% VAT which is £700

Damien Hirst/Heni has sold 3,300 of this specific artwork and in 4 other variations.

In total approx. 16,000 artworks sold @ $3500 USD , A total approx. of $55million

 Current market value of the artwork on Opensea market place = Approx 0.3ETH/£900 ( loss of approx. £2000)  

My Question – the digital receipt has been held in Heni’s vault and I have not moved it to my digital Wallet since making payment. If the physical artwork is not the value it claims at the time of claiming, would that be classed as “not fit for purpose ?”

Do you think I have any rights to ask for a refund or even an exchange ?

HENI Terms and Conditions

Section3 - no.6 : By initiating the purchase of an NFT, you agree that you are submitting a binding offer to purchase the NFT from us. Your order is accepted and confirmed once the purchase is complete and we notify you that the purchase is complete. You acknowledge that your purchase of the NFT cannot be refunded.

I look forward to hearing your thoughts.

No.

You bought a item (investment) that's value can increase or decrease. You are also using a crypto currency as basis for it's value. Which is subject to fluctuations.

As ever investment in such items are risky & more long term.

https://fadmagazine.com/2022/01/31/damien-hirsts-the-empresses-released-by-heni/

pinkshoes

@MRET if the value had increased four fold it wouldn't be fair if they could then cancel and say you could no longer purchase the physical art work. Likewise when it drops on value you can't cancel either.

It was a high risk investment if you were looking for a short term return. I suggest you pay the $700 and hope it increases in value in the next few decades. 

TELLIT01

I will never understand why anybody would buy something they would never actually be able to physically own.  Therefore the problem the OP is experiencing is not something that will ever affect me.