Abraham Stern

Employment of Broker - Implied Contracts - What Entitles to Compensation - Agent's Act and Principal - Rights of Principal - Double Employment - Options - Purchaser's Responsibility

IN discussing the subject of this lecture it is not my intention to go into the ethical side of the question. Like every other business, that of the broker is or should be subject to the same rules of conduct as are applicable to any other vocation. Good faith and truth are fundamental principles, applicable to the relationship of broker and principal as well if not more so as to other pursuits, and in the long run the broker who never loses sight of this fact and practices it will succeed in inspiring confidence, which is the most valuable article of the broker's stock in trade. We shall, however, in the limited time allotted for the purpose, discuss, in a cursory manner, the legal problems involved in the relationship of principal and broker. In order to properly understand the subject and to simplify it we shall divide the subject into the following subdivisions and take them up seriatim: I. The employment of the broker.

II. What efforts of the broker will entitle him to compensation.

III. How far the principal is bound by the acts of the broker.

IV. The rights of the principal.