Sales of goods act - digital artworks/assets

GingerTim

The only good thing about NFTs is that they are a useful indicator of gullibility.

Okell

MRET said:

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

Not unless the global population experiences a cataclysmic fall in collective IQ between now and the near future...

  

Okell

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...

Fortunately I know absolutely nothing about NFTs or crypto currencies - and I'd like it to stay that way - but what is it that you think you have bought?  (And is it what you've actually bought?)

You say it's "not an actually NFT", but you then describe it as a "digital item" and "digital receipt".  You then go on refer to the "physical artwork".   So what is it - digital or physical?

And what's the "I must pay 20% VAT which is £700" all about?  700 is 20% of the US$ price not the sterling price.  Do you have to pay VAT in sterling based on the US$ price?

MRET

On-the-coast said:

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

Can I also get you advice....what I actually want to know is if this is a grey area…. I have not yet transferred to my digital wallet (the digital item is still in Heni’s vault) and Heni has held my money for 3 years. Technically does that mean we have not exchanged goods/services – is it worth a try and am I in a position to ask for my money back?  

MRET

user1977 said:

The terms  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.

I am based in the UK, the VAT is payable if the physical item is shipped to a UK address

 Can I also get your advice....what I actually want to know is if this is a grey area…. I have not yet transferred to my digital wallet (the digital item is still in Heni’s vault) and Heni has held my money for 3 years. Technically does that mean we have not exchanged goods/services – is it worth a try and am I in a position to ask for my money back? 

MRET

flaneurs_lobster said:

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.

haha Yes thats what Im looking for

Can I also get your advice....what I actually want to know is if this is a grey area…. I have not yet transferred to my digital wallet (the digital item is still in Heni’s vault) and Heni has held my money for 3 years. Technically does that mean we have not exchanged goods/services – is it worth a try and am I in a position to ask for my money back?

MRET

Alderbank said:

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).

Thanks for your comment ! I do love this piece but the sale was based on a timed order ( a limited edition based on a deadline date on the final number of digital items sold ) its 1 of 3300 !! it was really just a cash cow for Hirst

Can I also get your advice....what I actually want to know is if this is a grey area…. I have not yet transferred to my digital wallet (the digital item is still in Heni’s vault) and Heni has held my money for 3 years. Technically does that mean we have not exchanged goods/services – is it worth a try and am I in a position to ask for my money back?

MRET

Aylesbury_Duck said:

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?

Thanks for your thoughts and all correct. The sale is based on a deadline date and limited to the final number of digital artworks sold. It is 1 of 3300 !

Can I also get your advice....what I actually want to know is if this is a grey area…. I have not yet transferred to my digital wallet (the digital item is still in Heni’s vault) and Heni has held my money for 3 years. Technically does that mean we have not exchanged goods/services – is it worth a try and am I in a position to ask for my money back?

MRET

born_again said:

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.

Thanks for your comment.

The sale was based on a timed order ( a limited edition based on a deadline date on the final number of digital items sold ) its 1 of 3300 !! it was really just a cash cow for Hirst

Can I also get your advice....what I actually want to know is if this is a grey area…. I have not yet transferred to my digital wallet (the digital item is still in Heni’s vault) and Heni has held my money for 3 years. Technically does that mean we have not exchanged goods/services – is it worth a try and am I in a position to ask for my money back?

MRET

pinkshoes said:

@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. 

Thanks for your comment.

The sale was based on a timed order ( a limited edition based on a deadline date on the final number of digital items sold ) its 1 of 3300 !! it was really just a cash cow for Hirst

Can I also get your advice....what I actually want to know is if this is a grey area…. I have not yet transferred to my digital wallet (the digital item is still in Heni’s vault) and Heni has held my money for 3 years. Technically does that mean we have not exchanged goods/services – is it worth a try and am I in a position to ask for my money back?