¶1In the opinion of the court this case does not fall within the provisions of the St. of 1836, c. 279, declaring contracts for the sale of stocks to be absolutely void unless the party contracting to sell such stocks is at the time the owner of such stocks. The contract was to sell the plaintiff’s Fitchburg Railroad stock and invest the proceeds in Essex Company stock, which was subsequently to be sold for the benefit of both parties, who were to divide the profits upon certain agreed principles, and leaving the burden of the loss, if one occurred, upon the defendant. But this not being the case provided for by the statute, the promissory note given to adjust the eventual loss is not to be held void. Nor will the further objections urged, that the contract was in contravention of the policy of the statute, and that it is substantially a wager on the value of certain stocks at a future day, upon the case stated, sustain the defence to the note. Judgment for the plaintiff.
73 Mass. 160
Barrett v. Hyde
Massachusetts Supreme Judicial Court
Decided October 15, 1856
Massachusetts Supreme Judicial Court · decided 1856-10-15
Action of contract on a promissory note. The parties submitted the case to the decision of the court upon the following facts: The plaintiff was the owner of five shares in the Fitchburg Railroad Corporation, and agreed with the defendant that the defendant should sell the shares, and purchase five shares in the Essex Company for the plaintiff, and sell them within six months after such purchase; and if they were sold for a profit over a certain amount, the profit should be…
Decided 1856-10-15