Section 50 Stamp Duties Act

Section 50 of Stamp Duties Act 1939 is about Obligation to execute contract note. It provides as follows:

(1) Any person who effects any sale or purchase of any stock or marketable security as a broker or agent, and any person who, by way of business, deals, or holds himself out as dealing, as a principal in any stock or marketable security, and buys or sells any such stock or marketable security, shall forthwith make and execute a contract note and transmit the note to his principal, or to the vendor or purchaser of the stock or marketable security, as the case may be, and in default of so doing shall be guilty of an offence and liable on conviction to a fine of forty naira.

(2) If any person makes or executes any contract note chargeable with duty and not being duly stamped, he shall be guilty of an offence and liable on conviction to a fine of forty naira.

(3) No broker, agent, or other person shall have any legal claim to any charge for brokerage, commission or agency, with reference to the sale or purchase of any stock or marketable security if he fails to comply with the provisions of this section.

(4) All stamp duties on a contract note may be denoted by an adhesive stamp which is to be cancelled by the person by whom the note is executed.

(5) Any duty on a contract note may be added to the charge for brokerage or agency, and shall be recoverable as part of such charge.

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