This 10 page paper considers a complex case provided by the student which involves a stockbroker and a client where trading has taken place over the clients limit resulting in the client owing money to the stockbroker. The client wishes to defend this and also make a counter claim for losses. The writer consider contract law, SFA regulations and the law of tort. This paper is based on English law. The bibliography cites 10 sources.
Name of Research Paper File: TS14_TEfintrt.rtf
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not maintained a check on his positions. AS a result he has amounted debts which the stock broking firm are now trying to recover. The defendant does not wish to
pay these amounts furthermore he asserts that due to the position that the stock broking firm placed him in by continuing to trade on his behalf he has suffered further
losses. There is not issue regarding the fact that they were acting on the instructions that they had received. The defendant argues that he had a trading limit, and it
was on this trading limit that he relied for his information. The reason for the over trading and resultant debts was as a result of this trading limit being breached.
He argues that had the company stuck to their limit and prevented him from trading then this situation would not have occurred. In seeking to build a defence we need
to look at several issues. The first issue we can consider is whether there was a laid contract in place, and if the
brokers were acting in breach of that contract. To look at this we need to consider the formation of the contract and the terms and conditions that it was formed
under. Here were are looking to ascertain if we can claim that there was no contract, or that the brokers were in breach of their contract.
If we compare the financial services sector to other retail sectors we can see that the majority of purchases made by any consumer will benefit from some
form of legislative protection. This means that if any problem occurs with the purchase the consumer may request a replacement or a refund. Any dissatisfaction will normally be discovered
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