Area of Law
This case relates to agency matter.
Outline of Law
A stock broker can be classified as general agents who deal with buying or selling shares in the stock exchange as the representative for the clients (Maltas 2007, p. 22). As an agent, he/she has duties such as to act in good faith which means that he/she has to disclose all of the personal interests and not take a secret profit relating in any agency deals because he/she is in a fiduciary relationship with the principal (Maltas 2007, p. 37). We can see in Armstrong v Jackson (1971) 2 K.B. 82, the principal asked a share broker to buy shares for him. In this situation, the share broker had some shares but he could not sell his shares since he is contacted as an agent for the principal, if he was willing to sell his shares, he would fail to do his liability as an agent. Also, in Hewson v Sydney Stock Exchange (1967) W.N. (NSW) 422, not only could the stock broker indulge in the business of a share trader but also......
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Approximate Word Count: 502
Approximate Pages: 2 (260 words per double-spaced page) |