Commission as a Type of Contract – Legal Status of the Principal and the Commission Agent in the Public Trade in Securities and the Need for the Development of Doctrine Concerning Commission
DOI:
https://doi.org/10.33344/vol1iss1pp53-71Abstract
This article analyzes commission sales and purchases and their regulation in Finnish securities market transactions where the commission agent is a securities brokerage firm and the principal is a small-scale investor. A commission can be described as a typical assignment contract where one acts in one’s own name for another person. This type of contract is well established on the one hand because of the anonymity it provides, and on the other hand because only brokers who have been accepted as members of the Helsinki stock exchange are permitted to trade in it.
Because there is no general act on the commission of securities, the doctrine concerning commission is analyzed in light of the Swedish Act on commission, and legal material relating to the type of assignment in question is systematized. Furthermore, opportunities offered by recent contractual law are utilized in the analysis of the commission law. This article seeks to define the legal status of the parties involved in transactions by utilising legal comparisons and a new theoretical approach.
