Factor

Factor, in its most general sense, is the term applied to any one who is employed to do business for another. In its most frequent use the name is applied to an Agent (q.v.) employed to sell goods consigned to him by his principal. His remuneration is called factorage or commission, and such an agent a commission-agent or consignee. A broker is also an agent of this kind, rewarded by a commission; but a factor differs from a broker in this, that a factor may buy and sell in his own name, and has the possession and apparent ownership of the goods consigned, and a lien over them. A factor is not entitled to delegate his powers, although he may employ a third person in any ministerial capacity which he cannot himself fulfil. The duty of a factor is to procure intelligence of the markets at his residence, of the course of exchange, and of the price of goods and the probability of a rise or fall; and to account to his principal for his transactions. A factor may pledge the goods of his principal for advances made upon the principal's account, or for the duties on the goods, but not for advances made upon the factor's account. The Factors Acts, the earliest of which was passed in the reign of George IV., enact that under certain circumstances factors having goods in their possession, or having possession of bills of lading, dock warrants, and similar documents referring to goods, shall be deemed owners of such goods, to the effect of giving validity to contracts with persons dealing bonâ fide on the faith of that ownership. Factory may be revoked, and falls by the death of the principal. The appointment of a new factor to do the same act implies revocation of the old factory. These general principles are common to both English and Scotch law. In Scotland, however, there are special uses of the term factor not known to English practice. There the term is applied to an agent managing heritable estates for another, letting farms, drawing rents, and the like, in which sense it is nearly synonymous with the English steward. In Scotland, too, the class of factors appointed by the courts for the management of the estates of persons under some incapacity, where the English courts appoint receivers or trustees, has increased so largely in recent times as to call into existence a whole department of law dealing with their powers and duties. Such are called Judicial Factors.