Sharp

This is an appeal from a judgment in favor of defendants and from an order of the trial court denying a new trial. The defendant E. D. Leavitt & Company, a California corporation, secured from the commissioner of corporations a broker’s certificate and filed a bond in the sum of $5,000 as required by section 5 of the Corporate Securities Act (Act 3814, p. 1376, Deering’s Cons. Supp. 1925-27). The surety on the bond was the defendant Hartford Accident and Indemnity Company. Thereafter Leavitt & Company employed one LeNaire to sell stock of the South Coast Gas Company. His instructions were to sell for cash or marketable securities only and with a deposit of not less than thirty per cent at time of taking the order. From the record it appears that the agent’s authority to make a contract of sale for his principal was limited only to securing the approval of the principal if any marketable securities were taken, but was full and complete if the sale was for cash. LeNaire secured an order for twelve shares of the stock from plaintiff at $100 per share, plaintiff giving him a deposit of $40 cash and a check for $60, payable to the agent. LeNaire turned the check into the company for…