Perhaps yes. But yes, only if they have any proof of executing transaction over phone and you instructed them to do so. If you have instructed, they would have given you the buy contract / confirmation of trade and most brokers have voice recordings.
SO, if they prove it, that you had called up to put transactions for and on your behalf, then you may be liable. Also, when you sent a check, you implicitly agree that check is towards some consideration.
So, if you can prove that you have never placed the order to buy, its fine. But otherwise, you may be liable for the loss of squaring off of the transaction.
I hope this helps...
Yes, you may be bound, but subject to the conditions mentioned in my reply. Get your papers checked with local attorney if you still have doubts.
I got your question completely and I fully understand it.
Try and understand. You authorized to put a trade to buy gold. Now if the prices fall, and if you do not want to pay and stop check payment, the broker will NOT wait and carry the position on his own. He will naturally square up, i.e. put the opposite order and in this case sell it off. You are entitled to receive the difference if sold at higher price and entitled to pay up the difference also, as in this case, it is sold at lower price.
Even if you file a complaint, you do not have any valid and tenable grounds. The broker is on the right side of the law. You only have two options. Either bluntly refuse to pay up and default and see what the broker can do or if he comes after you for payment, OR, simply pay up.
I hope I am clear to you. I may not have told what you would have liked to pay but I have tried to give you correct advice.