Contract Note - Definition - Law Dictionary Home Dictionary Definition contract-note

Definition :

Contract note, a short statement of the effect of a contract. The expression is defined ins. 77(3) of the Finance (1909-10) Act, 1910, as follows:--

For the purposes of this Part of this Act, the expression contract note' means the note sent by a broker or agent to his principal, or by any person who by way of business deals, or holds himself out as dealing, as a principal in any stock or market-able securities, advising the principal or the vendor or purchaser, as the case may be, of the sale or purchase of any stock or marketable security, but does not include a note sent by a broker or agent to his principal where the principal is himself acting as broker or agent for a principal, and is himself either a member of a stock exchange in the United Kingdom or a person who bona fide carries on the business of a stockbroker in the United Kingdom, and is registered as such in the list of stockbrokers kept by the Commissioners.

The same s. imposes stamp duties on contract notes varying with the value of the stock or marketable security dealt with. Thus if the value is between 5l. and 100l. the stamp is 6d., while the maximum is 1l. for values exceeding 20,000l. The duties may be denoted by adhesive stamps and maybe added to be charge for brokerage or agency.