Buying an iPhone at upgrade pricing, then selling it?

Hey everyone,
Currently I have an iPhone 4 and I have an available upgrade. I don't really need an iPhone 5 for any real reason other than it's a "new" phone. I was wondering if it's possible to simply buy the iPhone 5 at a discounted price then sell it to someone else online or locally. Does Verizon allow you to do this? Are there rules around activating it?
Any help on this would be great.
Thanks.

To expand on this ... if the OP has unlimited data, that will be lost with an upgrade since unlimited data plans are no longer available.  They will be switched to a 2 GB ($30) data plan or can choose to switch their account to a Share Everything plan (unless upgrading somewhere other than Verizon, then the only option is to switch to Share Everything).
I believe that if the phone is not at least briefly activated on the line, that you then are charged the full retail price of the phone.

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