The Law Dictionary

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FUTURES Definition & Legal Meaning

Definition & Citations:

This term has grown out of those purely speculative transactions, inwhich there is a nominal contract of sale forfuture delivery, but where in fact none is ever intended or executed. The nominal sellerdoes not have or expect to have the stock or merchandise he purports to sell, nor doesthe nominal buyer expect to receive it or to pay the price. Instead of that, a percentageor margin is paid, which is increased or diminished as the market rates go up or down,and accounted for to the buyer. King v. Quidnick Co., 14 R. I. 138; Lemon- ins v.Mayer, 71 Miss. 514. 14 South. 33; Plank v. Jackson, 128 Ind. 424, 26 N. E. 508.

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