Factor - Definition - Law Dictionary Home Dictionary Definition factor

Definition :

Factor [fr. facteur, Fr.], a substitute in mercantile affairs; an agent employed to sell goods or merchandise consigned or delivered to him by or for his principal, for a compensation commonly called factorage or commission. Hence he is often called a commission-merchant or consignee; and the goods received by him for sale are called a consignment. He is a home factor when he resides in the same state or country with his principal, and a foreign factor when he resides in a different state or country. He differs from a broker in this, and he may buy and sell in his own name, and is entrusted with the possession and disposal of the goods, and has a special property in, and a lien on, them; yet neither can delegate his authority, unless conferred by usages of trade or the assent of his principal. Factors have no incidental authority to barter goods, or to pledge them for advances made to them on their own account, or debts due by themselves; but they may pledge them for advances made on account of their principal, or for advances to themselves to the extent of their own lien on their goods. And they may pledge their principal's goods for the duties and other charges due thereon.

An agent or cause that contributes to a particular result; Black's Law Dictionary, 7th Edn., p. 612.

The (English) Factors Acts of 1823, of 1825, of 1842, and of 1877, passed with the object of facilitating commerce by enabling factors to sell or pledge goods entrusted to them for sale, were amended and consolidated by the (English) Factors Act, 1889 (52 & 53 Vict. c. 45), extended to Scotland by the Factors (Scotland) Act, 1890 (53 & 54 Vict. c. 40) (see Chitty's Statutes, tit. 'Factors').