Earlier quoted context omitted.
You are not listening to the person you are responding to. Nobody is going to argue that kickstarter backers are entitled to equity in the company, or that they have legal rights beyond what is guaranteed in the kickstarter. What the person is trying to get across is that in any financial transaction there are non-legal aspects involved. There are human relationships. The world runs on favors as much as it runs on co…
I'm listening. Are you? The parent of this thread quoted: "And I did not chip in ten grand to seed a first investment round to build value for a Facebook acquisition." If you didn't chip in ten grand of seed money for that purpose why didn't you make that part of the deal then ? There are no non-legal aspects of financial transactions. When you give someone money they're going to try to retain that money and not give…
> There are no non-legal aspects of financial transactions. When you give someone money they're going to try to retain that money and not give it back to you to the best of their legal ability. There really isn't a non-legal aspect involved in it unless you're a sucker who's willing to get screwed over.
This isn't really true, if you plan on doing business for more than one transaction. If you put a poison pill in a contract, guess what, you are blacklisted and can't do any deals in the future because nobody trusts you.
A similar thing is here. People chipped in money with the general expectation that Oculus was not going to sell out on the drop of a hat. It wasn't in the terms obviously but that was the expectation for many people. As such it's pretty much guaranteed for example that Palmer will never be able to do a kickstarter ever again (not that he cares at this point.) But it's a very real consequence, and so even though it was not in the deal in terms of legal consequences it is a very real outcome.
If you look at negotiations and transactions as if they are strictly independent events completely detached from human relationships you're probably a terrible negotiator slash businessperson. It's the difference between law and politics. I'll happily do a deal that isn't exactly a home run for me if I want to be sure I'll have a good relationship with that person for future opportunities.