The broker has no duty or liability to the buyer/offeror in a ...

[lindiwe]

The broker has no duty or liability to the buyer/offeror in a transaction.
  Indicate whether the statement is true or false

Question 2

Donna called her stockbroker Henry and told him to purchase 300 shares of Royex Corporation shares at 15 per share, the current market price. Henry agreed to do so, but became distracted and failed to do so. The price of the shares rose 3 in price that day. In the evening, Donna in a telephone conversation agreed to sell 300 shares of Royex to Sid. Assuming Henry and Donna dispute the validity of the contracts, which of the contracts are enforceable in court?

[Ksh22]

Answer to Question 1

FALSE

Answer to Question 2

A contract for the sale of corporate securities must be evidenced in writing or it cannot be enforced, so the contract between Donna and Sid is unenforceable. No writing is required for a contract by which a broker agrees to buy securities; this is not a contract for the sale of securities but an agency contract in which an agent agrees to perform a duty for a fee.

[lindiwe]

Thank you

[Ksh22]

No problemo