Sureet Has a Small Gardening Business

Essay

Sureet has a small gardening business.He recently won the lottery and had $50 000 to invest.He went to James,a stock broker,and told him that he would like to invest his money in shares that would give him a high return because he would be relying on this money to fund his retirement.He told James that he had few other assets and needed to grow this investment into a substantial sum if he was to live on it when he retired in 20 years.He said that he was relying on James because he had no investment experience.James recommended investing in options,a strategy which,if successful,would yield high returns.James did not explain to Sureet that there was a substantial risk that he could lose all his money.Sureet,attracted by the prospect of the high returns agreed to give all of the $50 000 to James to invest in options.Within six months all the money was gone.James was not negligent in how he pursued his options trading strategy,it simply was not successful.However,James did not keep Sureet informed on a regular basis about the losses.Sureet is now very angry and frustrated.Does Sureet have any claim against James?