Factor

A commercial agent, employed by a principal to sell merchandise consigned to him for that purpose, for and in behalf of the principal, but usually in his own name, being intrusted with the possession and control of the goods, and being remunerated by a commission, commonly called "factorage." A factor is an agent who, in the pursuit of an independent calling, is employed by another to sell property for him, and is vested by the latter with the possession or control of the property, or authorized to receive payment therefor from the purchaser.

Civil Code Cal. § 2026; Civil Code Dak. § 1168.

When the agent accompanies the ship, taking a cargo aboard, and it is consigned to him for sale, and he is to purchase a return cargo out of the proceeds, such agent is properly called a "factor." He is, however, usually known by the name of a "supercargo."

Beaw. Lex. Merc. 44, 47; Liverm. Ag. 69, 70; 1 Domat, b. 1, t. 16, § 3, art. 2.

Factors are called "domestic" or "foreign," according as they reside in the same country with the principal or in a different country. A "factor" is distinguished from a "broker" by being intrusted with the possession, management, and control of the goods, and by being authorized to buy and sell in his own name, as well as in that of his principal.

Russ. Fact. 4; Story, Ag. § 33; 2 Steph. Comm. 127; 2 Barn. & Ald. 137, 143; 2 Kent, Comm. 622, note.

The term is used in some of the states to denote the person who is elsewhere called "garnishee" or "trustee."