Bought And Sold Notes - Definition - Law Dictionary Home Dictionary Definition bought-and-sold-notes

Definition :

Bought and Sold Notes. It is no longer the custom for brokers who have succeeded in making a contract to make any entry in their books save for their own private information, and it is now almost the universal practice to regard the bought and sold notes as the proper evidence of the contract. The broker sends to the seller a 'sold note' and to the buyer a 'bought note,' these being now the usual terms, though formerly their use was sometimes the converse. When each note discloses the name of both parties to the transaction, each is a complete memorandum of the bargain. When each note only discloses the name of one party, the two may be treated as one memorandum. The bought and sold notes are deemed to constitute a single document, and if they differ materially they are nullities unless one has been assented to by the parties as containing the terms of the contract.

Every contract note for or relating to the sale or purchase of any stock or marketable security must be stamped when the value of the subject-matter is 5l., and does not exceed 100l., 6l.; does not exceed 500l., 1s.: does not exceed 1,000l., 2s.; does not exceed 1,500l., 3s.; does not exceed 2,500l., 4s.; and for every 2,500l. or part thereof, a further 2s. up to a maximum of 1l. Consult Addison on Contracts, Benjamin on Sale, or Leake or Chitty on Contracts