Gram v. Stebbins

Citations

• 6 Paige Ch. 124
• 1836 N.Y. LEXIS 284
• 1836 N.Y. Misc. LEXIS 81

Syllabus

<p>The vendor or purchaser of stock sold on time, where the vendor did not own the stock at the time of the pretended sale thereof, may recover back the money paid for the difference in the market price of stock between the time of sale and the time appointed for the delivery of the stock. And he may also compel the adverse party to answer on oath a bill filed in the court of chancery to ascertain the facts in the case.</p> <p>A contract made through the medium of a broker for the sale of stock on time, where the person for whom such sale is made is not the owner of the stock at the time of sale, is illegal, although the broker does not disclose the name of the person for whom he makes the sale. And if the broker receives a premium for the difference in the market value of the stock thus sold the money may be recovered back from him, unless he had paid it over to his principal before he had any notice that the pretended sale was illegal on the ground that the vendor did not own the stock he pretended to sell.</p>