Bboker

' An agent employed to make bargains and contracts between other persons in matters of trade, commerce or navigation, for a compensation commonly called brokerage.* Brokerage. The business of a broker; also, his remuneration or commission. Formerly spelled brokage and brocage. The term ' ' broker " is no longer limited to a person employed to negotiate contracts for the sale or exchange of goods, but is extended to almost every branch of business — to realty as well as to personalty.' The term is applied, ordinarily, to one acting for others.6 A broker is a middleman, an intervener between the buyer and the seller: a factor or agent who acts for one or the other.'' 1 Gardner v. Stover, ante. 2 Van Dolsen v. Abendroth, N. Y. City, Mar. Ct., 15 Eep. 4;'a (1883). 3 In Mid. Eng. an agent, a witness of a transaction. Probably allied to A. S. bru'can, to use, employ,

— Skeat. * Story, Agency, § 88; 83 N. Y. 381, infra. = Little Rock v. Barton, 33 Ark. 448, 444-49 (18T8), cases, Turner, S. J. « Warren v. Shook, 91 U. S. 710 (1875), Hunt, J. Brokers take their names from the kinds of contracts they negotiate. The more common classes are the following: Bill and note brokers. These negotiate the purchase and sale of bills of exchange and promissory nbtes. They impliedly warrant that the paper is as represented, with respect to the genuineness of signatures,, but not as to the solvency of parties. ' Their usefulness would be destroyed if a purchaser was to be affected with their knowledge as to the character of the paper they offer in market for discount.^ See Exchange Broker. Commercial broker. A person who negotiates sales of merchandise, or contracts for freights, for other persons. Within the meaning of the internal revenue laws a person who negotiates sales orpm-chases in the names of the parties primarily liable; not, one authoiized to sell in his own name or on his own accoimt.^ Any person or firm whose business it is, as a broker, to negotiate sales or purchases of goods, wares, or merchandise, or to negotiate freights and other business for the owners of vessels, or for the shippers, or consignors, or consignees of freight carried by vessels, shall be regarded as a commercial broker.* Exchange broker. A broker who negotiates bills of exchange, foreign or domestic. Every person, firm, or company, whose business it is to negotiate purchases or sales of stocks, bonds, exchange, biillion, coined money, bank-notes, promissory notes, or other securities, for themselves or others, shall be regarded as a broker.* Compare Bill and Stock Broker. Insurance broker. A person who negotiates contracts of insurance. He is agent for both parties. An insurance agent is, ordinarily, the employee of the insurer only. See lysuKANCE, Broker. Merchandise broker. A broker who negotiates sales of merchandise without having possession or control of it. See Factor. Pawnbroker. A person, usually licensed, who loans money, in small sums, at usurious interest, on the security of pledges of personalty. See further Pawn. Produce-broker. A person whose occupation it is to buy and sell agricultural or farm-products. ^ Not, then, one who sells from his own farm, or goes from house to house to sell his own produce.^ 'Baxter ii. Duren, 29 Me. 439^1 (1849), cases; Morrison V. Currie, 4 Duer, 82-85 (1854), cases; Aldrich v. Jackson, 5 H. I. 219 (1668). "^ Moorehead v. Gilniore, 77 Pa. 122. Agency: Worthington V. Cowles, 112 Mass. 30; 1 Dan. N. Inst. § 740 a. " [Slack V. Tucker, 23 Wall. 329 (1874). Beal estate broker. A broker who negotiates sales of realty. He may also negotiate loans on mortgages, let houses, lease lands, collect rents, etc. Inasmuch as acting for both pai'ties, in an exchange of lands, involves inconsistent duties he can recover remuneration from neither party, notwithstanding an express promise by one of the parties to pay a percentage, unless it dearly appears that each principal had full knowledge of all the circumstances connected with his employment by the other which would naturally affect his action, and had assented to the double employment. When such knowledge and assent are shown, he may recover from either party.* Ship broker. A broker who negotiates sales of ships, freighting of vessels, etc. See Commercial Broker. Stock broker. A broker who buys and sells shares in corporations. See Order, Stop, 2; RiNGlNQ Up; Stock, 3, Exchange. Ordinarily, a broker never buys or sells in his own name, nor has he possession of the goods; wherein he differs from a " factor " or commission merchant. His business is to bring buyer and seller together; but he need not actually negotiate the bargain. Unless there is a special agreement to the contrary, he earns his commission when he prociires a party with whom the principal is satisfied, and who actually contracts for the purchase of the property at a price acceptable to the owner. But he must establish his employment and that his agency was the procuring cause of the sale. Fending an authorized negotiation at private sale, the owner cannot take the business out of the broker's hands, complete the sale, and then refuse tft pay the commission.* The owner must have a good reason for refusing to fulfill his agreement to pay the broker for his services. Usage, in the absence of an express contract, determines the value of the services.* When the broker does not disclose his principal he may be held as principal. See Reai.izs.