Page:Harvard Law Review Volume 8.djvu/469

453 PURCHASE AND SALE. 453 that he will carry out the order, it might be thought that the cus- tomer was exposed to the danger of the stockbroker taking an order and making no effort to carry it out. This danger does not, however, exist. It is overcome by the following customs. 1. An order to buy or to sell securities can only be executed, if at all, on the day it is given, unless it is expressly stated in the order that it is " good" for a longer period^ of time or for some particular period of time.' 2. Unless precluded by the terms of an order to buy or to sell securities, there is implied as a term or condition of the agency conferred by the order that the stockbroker shall try to execute the order as early in the time for which it is " good " as it is pos- sible for him to do in accordance with the rules and customs of the Stock Exchange to which he belongs. Those customs will be enforced ^ by courts of law, and if the stockbroker does not comply with them it will be considered a breach of his duty to act with due care. The Notice, As soon as he can after executing an order the stockbroker should communicate the fact that he has done so to the customer. This duty is established by custom and will be enforced * by courts of law. The stockbroker need not follow any particular form in making this communication. It is usual, however, to make it in the form of a written notice.^ This notice states in a brief form exactly what kind of contract or contracts the stockbroker has made, and gives in addition the name of the stockbroker or stock- brokers with whom the contract or contracts has or have been made. As regards the wording of such a notice, the same customs which affect the interpretation of the terms of an order apply in 1 This custom is opposed to the rule that an authority is good till countermanded, if such a rule exists. Cf. Dickenson v. Tilvvall, i Stark. 128, s. c. 4 Campb. 279. Mr. Dos Passes seems to be ignorant of this custom. Dos Passos, 120. 2 In such a case it is usually made " good till countermanded," which is usually abbreviated, when written, to G. T. C. 8 See ante, page 443, note 3. Ct. 552; Cameron v. Durkheim, 55 N. Y. 425; Dos Passos, 190. The stockbroker is permitted to give evidence that a notice contained errors. Porter v. Wormser, 96 N. Y. 431- ^ See atUe, p. 443, note 3.
 * Finney z'. Gallaudet, 15 Daly (N. Y.),66; Hoffman z/. Livingstone, 46 N. Y. Super.