Advances

Payments made to the owner of goods by a factor or agent, who has or is to have possession of the goods for the purpose of selling them. An agent is entitled to reimburse himself from the proceeds of the goods, and has a lien on them for the amount paid; Liverm. Ag. 38; Merchants' National Bank v. Pope, 19 Or. 35, 26 Pac. 622; and an action over for the balance, against his principal, if the sales are insufficient to cover the advances; Parker v. Brancker, 22 Pick. (Mass.) 40; Marfield v. Goodhue, 3 N. Y. 62; Frothingham v. Everton, 12 N. H. 239; Harrison, Frazier & Co. v. Mora, 150 Pa. 481, 24 Atl. 705; Eichel v. Sawyer, 44 Fed. 845; but he must first exhaust the property in his hands; Balderston v. Rubber Co., 18 R. I. 338, 27 Atl. 507, 49 Am. St. Rep. 772. Where to save himself from loss the factor buys the goods himself, the consignor may elect whether he will ratify the sale or demand the value of the goods; Sims v. Miller, 37 S. C. 402, 16 S. E. 155, 34 Am. St. Rep. 762. See Agent; Factor. In the case of a contract for the manufacture and sale of merchandize, a stipulation to advance money on account means to supply beforehand, to loan before the work is done or the goods made; Powder Co. v. Burkhardt, 97 U. S. 110, 24 L. Ed. 973. It also refers to a case where money is paid before, or in advance of, the proper time of payment; it may characterize a loan or a gift, or money advanced to be repaid conditionally; Vail v. Vail, 10 Barb. (N. Y.) 73. Though in its strict legal sense the word does not mean gifts or advancements, but rather a sort of loan, in its ordinary and usual sense it includes both loans and gifts — rather the former than the latter; Prouty v. Swift, 51 N. Y. 597; Nolan's Ex'rs v. Bolton, 25 Ga. 352. As to mortgages to secure future advancements, see Mortgage.