commerce, is an agent employed by merchants residing at other places, to buy or sell goods, or negotiate bills, or transact any kind of business on their account; and intitled to a certain allowance for his trouble.

A supercargo differs from a factor in this: The business of the former is limited to the care of a particular cargo; he goes along with it, and generally returns when his business is completed: the latter has a fixed fixed residence abroad, and executes business for different merchants. But their duties, and the circumstances for which they are accountable, are the same.

The duty of a factor is to procure the best intelligence of the state of trade at his place of residence; of the course of exchange; of the quantity and quality of goods at market, their present price, and the probability that it may rise or fall; to pay exact obedience to the orders of his employers; to consult their advantage in matters referred to his direction; to execute their business with all the dispatch that circumstances admit; to be early in his intelligence, distinct in his accounts, and punctual in his correspondence.

A factor's power is either absolute or limited. Though intrusted with ample discretionary powers, he is not warranted to take unreasonable or unusual measures, or do anything contrary to his employer's interest; but it is incumbent on the employer, if he challenge his proceedings, to prove that he could have done better, and was guilty of wilful mismanagement.

When a factor's power is limited, he must adhere strictly to his orders. If he exceeds his power, though with a view to his employer's interest, he is liable for the consequence. For example, if he gives credit when not empowered, or longer credit if not empowered, for the sake of a better price, and the buyer proves insolvent, he is liable for the debt. A factor has no power to give credit unless authorised: But if the goods consigned be generally sold on credit at the place of consignment, the factor will be vindicated for selling at the usual credit, unless expressly restricted.

Although opinion will never justify the factor for departing from orders, necessity sometimes will. If he be limited not to sell goods under a certain price, and the goods be perishable, and not in a situation for being kept, he may sell them, to prevent their destruction, even under the price limited.

A factor is never warranted to deal on trust, except with persons in good credit at the time. If the employer challenge the debtors, it is incumbent on him to prove that their bad circumstances was known at the time of sale; and the factor will be vindicated, if he trusted them at the same time for goods of his own.

If the factor sells his employer's goods on trust, and, after the day of payment is elapsed, receive payment from the purchaser for a debt of his own, he becomes liable in equity for the debt.

In case of bankruptcy, the factor ought immediately to lay attachments, and advise his employers; and he cannot withdraw his attachments, nor compound debts without orders.

If a factor sells goods belonging to different merchants to the same person, and the buyer proves insolvent, they shall bear the loss in equal proportions; and, if the buyer has paid part before his insolvency, without specifying for which, the payment ought to be distributed in equal proportions; but, if the days of payment be fixed, and part of the debts only due, the payment ought to be applied, in the first place, to such debts as were due.

If he makes a wrong entry at the custom-house, and the goods be seized in consequence thereof, he must bear the loss, unless the error be occasioned by a mistake in the invoice, or letter of advice.

The owner bears the loss of goods seized when attempted to be smuggled by his orders; but the factor complying with an unlawful order is liable in such penalties as the laws exact.

If a factor owes the duty of goods due to a foreign prince, he shall have the benefit; for, if detected, he bears the loss.

If a factor sells goods bought by his employer's orders for his own advantage, the employer may recover the benefit, and the factor shall be amerced for the same.

If a factor receives bad money in payment, he bears the loss; but if the value of the money be lessened by the government, the employer bears the loss.

A factor is not liable for goods spoiled, robbed, or destroyed by fire.

If a factor receives counterfeit jewels from his employer, and sells them, the employer is liable to indemnify him for any penalties he may incur.

If a factor be ordered to make insurance, and neglect it, and the subject be lost, he is liable to make it good, providing he had effects in his hands.

If a factor buys goods for his employer, his bargain shall be binding on the employer.

In case of a factor's insolvency, the owner may reclaim his goods; and, if they be sold on trust, the owner (and not the factor's creditors) shall recover payment of the debts.

**Factor**, in multiplication, a name given to the multiplier and multiplicand, because they constitute the product. See Arithmetic.

**Factorage**, called also commission, is the allowance given to factors by the merchant who employs them.

A factor's commission in Britain, on most kinds of goods, is 2½ per cent.; on lead, and some other articles, 2 per cent.; in Italy, 2½ per cent.; in France, Holland, Spain, Portugal, Hamburg, and Dantzig, 2 per cent.; in Turkey, 3 per cent.; in North America, 5 per cent. on sales, and 5 per cent. in returns; in the West Indies, 8 per cent. for commission and storage. In some places, it is customary for the factors to insure the debts for an additional allowance, generally 1½ per cent. In that case, they are accountable for the debt when the usual term of credit is expired.