Sales of goods act - digital artworks/assets

mr_stripey

Did Hirst cut the "cash cow" in half?

I think the answer to your question is

- you can ask for your money back
- you probably won't get your money back

What did the T&C's of the contract say?

the_lunatic_is_in_my_head

Hello OP

It's not really a consumer rights issue for the board if you are covered by the laws of New York as we mainly know about UK laws, having spent the 3500 USD you might as well follow through and get the physical artwork for the additional and hope when the artist passes you are able to reclaim some of your money.

When famous people die there tends to be a bit of a surge in stuff relating to them, Michael Jackson dies and Amazon sells out of his albums despite them be available for decades, that spike in interest might see you be able to sell the physical artwork to recover some of the money, if you are lucky  

born_again

MRET said:

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?

As far as the UK goes there is nothing you can do. As you bought in the US

As @user1977 advised New York state law applies.

So you would need to take advise in USA for any get out. But TBH, if it's in your wallet or theirs, you have paid them for the item. Which will be subject to UK VAT at least when you receive the physical item in the UK.
Being a timed purchase makes no difference.

I can see not reason for them to give you your purchase back. You bought a investment (non protected) & the price has fallen.

Grey are it sure is. As this is a unregulated financial transaction. Which in reality should never be entered in without being prepared to lose the money invested. Not even sure where you would get any advice on these sorts of purchase other than on the internet. & we all know how bad that can be..

Aylesbury_Duck

MRET said:

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?

Limited to just 3,300?  Gosh, that makes it rare...

As for your question:  Yes, of course you're in a position to ask for your money back, but I'm pretty certain the answer will be no.  As I see it, you have exchanged a service - you've paid them to hold the digital item in their vault with your name on it.

MattMattMattUK

MRET said:

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?  

I do not think that there is a grey area, you purchased a digital thing, you agreed to the terms and conditions, they are valid under the law of the jurisdiction the transaction too place under, you are bound by those perfectly legal terms and conditions. 

The VAT is because you are importing something to the UK, that is no different to any other import and does not mean the transaction takes place under UK law. 

You can ask, I would be very surprised if the answer was anything other than "No", investments can go down as well as up. 

Ergates

MRET said:

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?  

No, it's not a grey area - in terms of consumer rights.   "Not fit for purpose" means that an item, due to the way it was design or built, cannot fulfil the purpose for which it was sold.

For instance - a chocolate teapot *sold as a teapot* would be "not fit for purpose" because it would melt. (If it was sold as a confectionary item, it would be fine)

The purpose of a piece of art (whether physical or digital) is not to retain, or go up in, value.

Regarding the "does that mean we have not exchanged goods/services" - it's impossible for anyone here to say without seeing the contract that you have entered into.