BROKERS. Those who are engaged for others in the negotiation of contracts relative to property, with the custody of which they have no concern. Paley, Agency, 13. See Comyns, Dig. Merchant, C.
A broker is, for some purposes, treated as the agent of both parties; but, in the first place, he is deemed the agent only of the person by whom he is originally employed, and does not become the agent of the other until the bargain or contraot has been definitely settled, as to the terms, between the principals. Paley, Ag. Lloyd ed. 171, note p; 1 Youngs It J. Exch. 387; 13 Meto. Mass. 463.
Bill and Note Brokers negotiate the pur chase and sale of bills of exchange and promissory notes.
They arc paid a oommission by the seller of the securities ; and it is not their custom to disclose the names of their principals. There is an implied war ranty that What they 'sell is what they represent it to be and should a bill or note sold by them turn out to be a forgery, they are held to be resptnsible; but it would appear that by showing a payment over to their principals, or other special circumstances attending the transaction proving that it would be inequitable to hold them responsible, they will be discharged. Edwards, Bills, 291; 4 Dn. N. Y. 79.
Exchange Brokers bills of ex change drawn on foreign countries, or on other places in this country.
It is sometimes part of the business of exchange brokers to buy and sell uncurrent bank notes and gold and silver coins, as well as drafts and checks drawn or payable in other cities; although, as they do this at their own risk and for their own profit, it is difficult to see the reason for calling them bro kers. The term is often thus erroneously applied to all persons doing a money business.
Insurance Brokers procure insurance, and negotiate between insurers and insured.
Merchandise Brokers negotiate the sale of merchandise without having possession or control of it, as factors have.
Pawnbrokers lend money in small sums, on the security of personal property, at usurious rates of interest. They are licensed by the authorities, and excepted from the operation of the usury laws.
Real Estate Brokers. Those who negotiate the sale or purchase of real property. They are a numerous class, and, in addition to the above duty, sometimes procure loans on mart. gage security, collect rents, and attend to the letting and leasing of houses and lands.
Ship Brokers negotiate the purchase and sale of ships, and the business of freighting vessels. Like other brokers, they receive a commission from the seller only.
Stock Brokers. Those employed to buy and sell shares of stocks in incorporated com panies, and the indebtedness of governments.
In the larger cities, the stock brokers are asso ciated together under the name of the Board of Brokers. See STOCK EXCHANGE. This Board is an association admission to membership in which is guarded with jealous care. Memberebip is for feited for default in carrying out contracts, sod rules are prescribed for the conduct of the bnsinere, which are enforced on all members. The purchases and sales are made at sessions of the Board, and are all officially recorded and published by an officer of the association. Stock brokers charge commis sion to both the buyers and sellers of stocks.
See Story, Ag. 0028-32 ; Malyn es, Lex Mere. 143; Livermore, Ag. ; Chitty, Com. Law.