Is utility part of the purchase of an NFT?
Select jurisdiction
India
The concept of utility is not typically part of the purchase of an NFT. NFTs are digital assets
that are often used to represent unique items such as art, collectibles, or other types of
digital content. However, if there is an underlying utility associated with a project then that
ought to form part of the purchase of an NFT unless specifically excluded.
Brazil
It depends if utilities are offered to the buyers as a part of the purchase. If that is the
case and therefore it constitutes significant part of the NFT’s value, then the utility would be
part of the purchase. That would constitute a proposal and it would oblige the proposer by the
terms of the article 35 of the Brazilian Consumer Protection Code, if in a consumer relation,
and the article 427 of the Brazilian Civil Code.
United States
Yes, it can. It depends on the type of NFT and on the smart contract. Certain
NFTs are simply ownership records to a profile picture, art or collectibles. Others, like NFT
tickets for “token-gated events” have utility. In that example, the NFT acts as a ticket.
Poland
The question of whether the utility is part of the purchase of an NFT according to Polish law is uncertain and would depend on the specific terms and conditions of the NFT.
Utility is a term that refers to the functionality or usefulness of an NFT, it could be the ability to be
used in a virtual world, to access certain content, or to be used on different platforms. The utility is not a legal requirement for the purchase of an NFT under Polish law, but it's a common practice for NFT creators to specify the utility of their NFTs.
If the NFT utility will be specified in the terms and conditions of the NFT purchase contract then, as a
rule, the seller will be obliged to provide such NFT utility.
