59-9-1 Factor defined.
59-9-2 Obedience required of factor.
59-9-3 Liability under guaranty commission.
59-9-4 Factor cannot relieve himself from liability without principal's consent.
59-9-5 Actual authority to sell on credit, restrictions.
59-9-6 Insurance of uninsured property consigned to factor.
59-9-7 Delegation of authority to partner or servant.
59-9-8 Ostensible authority.
59-9-1. Factor defined.
A factor is an agent, who, in the pursuit of an independent calling, is employed to buy or sell property in his own name, and is entrusted by his principal with the possession or control of the property, or authorized to receive payment therefor from the purchaser.
Source: CivC 1877, §§ 1168, 1387; CL 1887, §§ 3791, 4010; RCivC 1903, §§ 1487, 1706; RC 1919, § 1288; SDC 1939, § 3.0601.
See Cal Civ Code, § 2026.
59-9-2. Obedience required of factor.
A factor must obey the instructions of his principal to the same extent as any other employee, notwithstanding any advances he may have made to his principal upon the property consigned to him, except that if the principal forbids him to sell at the market price, he may nevertheless sell for his reimbursement, after giving to his principal reasonable notice of his intention to do so, and of the time and place of sale, and proceeding in all respects as a pledgee.
Source: CivC 1877, § 1169; CL 1887, § 3792; RCivC 1903, § 1488; RC 1919, § 1289; SDC 1939, § 3.0604.
59-9-3. Liability under guaranty commission.
A factor who charges his principal with a guaranty commission upon a sale, thereby assumes absolutely to pay the price when it falls due, as if it were a debt of his own, and not as a mere guarantor for the purchaser; but he does not thereby assume any additional responsibility for the safety of his remittance of the proceeds.
Source: CivC 1877, § 1171; CL 1887, § 3794; RCivC 1903, § 1490; RC 1919, § 1291; SDC 1939, § 3.0605.
59-9-4. Factor cannot relieve himself from liability without principal's consent.
A factor who receives property for sale under a general agreement or usage to guarantee sales or the remittance of the proceeds, cannot relieve himself from responsibility therefor without consent of his principal.
Source: CivC 1877, § 1172; CL 1887, § 3795; RCivC 1903, § 1491; RC 1919, § 1292; SDC 1939, § 3.0606.
59-9-5. Actual authority to sell on credit, restrictions.
In addition to the authority of agents in general, a factor has actual authority from his principal unless specially restricted to sell on such credit as is usual anything entrusted to him for sale excepting such things as it is contrary to usage to sell on credit, but having once agreed with the purchaser upon the terms of credit, the factor may not extend it, nor may he pledge, mortgage, or barter property entrusted to him for sale.
Source: CivC 1877, §§ 1170, 1388; CL 1887, §§ 3793, 4011; RCivC 1903, §§ 1489, 1707; RC 1919, §§ 1290, 1293; SDC 1939, § 3.0602 (1).
59-9-6. Insurance of uninsured property consigned to factor.
In addition to the authority of agents in general, a factor has actual authority from his principal, unless specially restricted, to insure property consigned to him uninsured.
Source: CivC 1877, § 1388, subdiv 2; CL 1887, § 4011, subdiv 2; RCivC 1903, § 1707, subdiv 2; RC 1919, § 1293 (2); SDC 1939, § 3.0602 (2).
59-9-7. Delegation of authority to partner or servant.
In addition to the authority of agents in general, a factor has actual authority from his principal, unless specially restricted, to delegate his authority to his partner or servant, but not to any person in an independent calling.
Source: CivC 1877, § 1388, subdiv 3; CL 1887, § 4011, subdiv 3; RCivC 1903, § 1707, subdiv 3; RC 1919, § 1293 (3); SDC 1939, § 3.0602 (3).
59-9-8. Ostensible authority.
A factor has ostensible authority to deal with the property of his principal as his own in transactions with persons not having notice of the actual ownership.
Source: CivC 1877, § 1389; CL 1887, § 4012; RCivC 1903, § 1708; RC 1919, § 1294; SDC 1939, § 3.0603.
