Contract Law in Domain Transactions
Contract law governs the sale, purchase, escrow, licensing, and leasing of domain names as intangible personal property. Domain sales agreements must address key elements including purchase price, payment terms, escrow arrangements (typically through services like Escrow.com or Dan.com), transfer mechanics and timelines, representations and warranties regarding clear title and absence of disputes, and post-transfer obligations. Courts in most jurisdictions treat domain names as property capable of being bought, sold, and liened. Issues such as [[domain-tax-law]] implications, [[domain-inheritance]] planning, and broker commission disputes are all resolved under general contract principles adapted to the digital asset context. Domain lease-to-own arrangements introduce additional complexity around continued use rights during the lease period.
Example
A domain investor and startup agreed to a $250,000 sale via a formal purchase agreement, using an escrow service to hold funds until the registrar confirmed successful transfer of the domain to the buyer's account.