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Comment by ecesena | Hacker News Reader

Isn't this either very border line or even illegal in the US (genuinely asking)? - I thought every contract between 2 parties required an exchange of something, so money can't be traded for nothing, but maybe I'm wrong.

Edit: getting downvoted, not sure why, explanation would be helpful

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There is no contract—it's a gift.[1]

That probably also means it's not income and will be tax-free.[2]

[1] https://en.wikipedia.org/wiki/Gift_(law)

[2] https://en.wikipedia.org/wiki/Gift_tax_in_the_United_States

Thanks, that explains.

IANAL but I don't see how it could be illegal.

There's no misrepresentation. Both the "buyer" and the "seller" know what is going on and agree.

Give an illegal action A, a seller could sell a service that does A. If you buy A, it doesn't make it legal just because both you and the seller know what is going on and agree.

You seem to understand the basics of contract law. However you seem to miss that cases are decided by people and not robots, and judges have a great deal of legal flexibility.

That being said, if someone did threaten to sue I highly suspect that CAH would refund the $5 since even a single lawyer's letter costs more than the entire case is worth.

It just means the buyers could easily get a refund. It's not illegal.

Similarly, technically minors can't enter into commercial contracts except for life necessities. So if an <18 buys a car, they could return it whenever they want. Whether they'd have to pay something for its use/damage is debatable.

Interesting, thanks.

>So if an <18 buys a car, they could return it whenever they want. Whether they'd have to pay something for its use/damage is debatable.

Can you go more into detail on that or tell me what law says that? Does that mean I (17/US) could walk into Walmart, buy a shirt, wear it for 6 months and expect a full refund?

He said except life necessities, which a shirt probably is part of.

https://en.wikipedia.org/wiki/Capacity_(law) It's a very general legal principle, so how it applies varies jurisdiction to jurisdiction (and probably case by case since it may not be codified clearly). Look under infancy, and minors and contractual capacity.

Chances are, a dealership won't sell a car to someone <18 for this reason. Used car/private sellers are taking a big chance if they do.

You wouldn't be able to come back more than depreciated value. Minors aren't permitted to destroy stuff for free.

There is no contract -- no binding agreement saying the donor will give CAH money, and CAH will give them nothing.

But that just means contract law doesn't apply -- it doesn't make it illegal.

So long as there is no misrepresentation on the part of CAH they're in thoroughly legal waters. It's just a donation drive.

Probably not any different than just donating to a GoFundMe fundraiser. It's not actually a deductible charitable donation, and you're receiving nothing in return.

I believe that crowdfunding platforms solved exactly the legal issue behind that. I have no idea about the details but I imagine that 1. they take care about taxes and similar, and 2. someone you're donating money in exchange of being part of the cause, whatever this legally means.

What I'm asking is specifically related to the term "nothing", which (I think) can only have a single interpretation.

Crowdfibding sites to not handle income taxes, only sdles taxes where relevant. They only withhold CC fees and their fees.

If that's true, why is Kickstarter legal?

Kickstarter is different because you usually get something in return, and this was the essence of my original question. Anyway, I think gift is the answer, which I didn't know.

How do you suppose that charities work?

It is likely being sold as a service.

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