how can I protect myself in an online investment

[pat3030]

What is the name of your state (only U.S. law)? Michigan

So the basic question is, how/can you cover yourself in online investments?

Here is a scenario: you invest $500 into a company for startup/launch costs. they promise you a $2500 return in 90 days.

Can you legally set something up to cover your ass if they run? such as binding legal contracts?

Im not sure if anyone here is familiar with this type of stuff but I would love some tips if anyone is.

Thank you!

 

[Mass_Shyster]

Here is a scenario: you invest $500 into a company for startup/launch costs. they promise you a $2500 return in 90 days.

There's a tip off that it's a scam.

Can you legally set something up to cover your ass if they run? such as binding legal contracts?

You can't enforce a binding legal contract if the defendant is nowhere to be found.

Im not sure if anyone here is familiar with this type of stuff but I would love some tips if anyone is.

Run, don't walk away. It's a scam.

 

[pat3030]

There's a tip off that it's a scam.



You can't enforce a binding legal contract if the defendant is nowhere to be found.



Run, don't walk away. It's a scam.

I understand that. the story was completely hypothetical. I guess I'm asking is there any legal documents that people that invest in startups online use. Online partnerships / JV's are very common with the internet booming like it is. I can't imagine all of them just going by the "trust rule".

 

[swalsh411]

A investment in a new business is by its very nature risky. If you could spend $500 today and get an ironclad guaruntee of 2,500 in 90 days it would be the greatest investment vehicle ever.

 

[Zigner]

An "investment", by definition, does not "guarantee" income. That is why your hypothetical scenario screams of SCAM.