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Rights of Factors


RIGHTS OF FACTORS. A factor is entitled to compensation from the principal, usually a commission fixed by agreement, by usage, or upon a quantum meruit. (Mechem on Agency, Sec. Io27; Zurn v. Noedle, 113 Pa. St. 336.) For all advances, and expenses incurred on the principal's behalf within the performance of the undertaking, the factor is enti tied to be reimbursed by the principal. And for all acts within the limits of his authority and liabilities in curred in the discharge of his duties he is to be held harmless by the principal. He is given a general lien upon all goods of the principal of which he has the possession, and upon the money or security realized from their authorized sale, to secure the payment of all amounts due him by the principal in reference to the particular goods, or any general balance due under the contract of agency. But the lien does not extend to protect a debt.contracted prior to, and without ref erence to the agency. (Story on Agency, Sec. 376; Jordan v. James, 5 Ohio, 88.) As against third persons, the factor can sue for the purchase price of the goods, or upon a note taken in payment from the purchaser. He also may sue upon the contract if made in his name, and maintain an action for trespass, trover, or replevin against those N\tho injure the goods or seek to take them without au thority. (Beyer v. Bush, 50 Ala. 19.)

principal and agency