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4. Of Factors.

§ 305. How appointed. — The authority of the factor

may be created and terminated like that of other agents.

§306. Implied powers. — He may sell the goods in

his own name, may grant a reasonable credit, and may

give a warranty where that is usual. He has no implied

power to pledge or transfer the goods for his own debt,

though by statutes called Factors' Acts now found in

many States innocent pledges are protected. He has

no implied power to exchange the goods, to delegate

his authority, to compromise the claim for the pur-

chase price, to rescind the sale, to extend the time of

payment, to make negotiable paper, or to receive any-

thing but money in payment for the goods.

See Pinkham v. Crocker, 77 Me. 563, Cas. Ag. 676; Warner v.

Martin, 11 How. (U. S.) 209, Cas. Ag. 678; Insurance Co. v. Kiger,

103 U. S. 352, Cas. Ag. 686; Commercial Bank v. Hurt, 99 Ala. 130,

12 So. Rep. 568, 19 L. R. A. 701, 42 Am. St. Rep. 38; Romeo v.

Martucci, 72 Conn. 504, 45 Atl. Rep. 1, 99, 47 L. R. A. 601; First

National Bank v. Schween, 127 111. 573, 20 N. E. Rep. 681, 11 Am. St.

Rep. 174; Argersinger v. Macnaughten, 114 N. Y. 535, 21 N. E. Rep.

1022, 11 Am. St. Rep. 687; Peek v. Heim, 127 Pa. St. 500, 17 Atl.

Rep. 984, 14 Am. St. Rep. 865; Barnes Safe Co. v. Bloch Bros. Co.,

38 W. Va. 158, 18 S. E. Rep. 482, 22 L. R. A. 850, 45 Am. St. Rep. 846.

§ 307. Duties to principal. — He must act in good

faith, be loyal to his trust and exercise reasonable skill

and diligence.

See Phillips v. Moir, 69 111. 155, Cas. Ag. 671; Conway v. Lewis,

120 Pa. St. 215, 13 Atl. Rep. 826, 6 Am. St. Rep. 700; Usborne v.

§§307-309.1 SPEC I.\ I, CLASSES OF AGENT!

Stephenson, 36 Oreg. 328, 48 L. R. A. 432; Sims v. Miller, 3.

Car. 402, 16 S. E. Rep. 155, 34 Am. St. Rep. 762; Charlotte Oil Co.

v. Hartog, 29 C. C. A. 56, 85 Fed. Rep. 150.

§308. Same subject. — He must obey instructions

as to the time and terms of sale, and will be Liable Cor

losses caused by his disobedience; except thai where lie

lias made advances on the goods t<> his principal, he may

sell contrary to orders, for his own reimbursement, if

the principal has neglected to reimburse him within a

reasonable time after demand; and he is not obliged to

sell at a price fixed by the principal when he would

thereby imperil his security.

See Talcott v. Chew, 27 Fed. Rep. 273, Cas. Ag. 689; Lehman v.

Pritchett, 84 Ala. 512, Cas. Ag. 693; Hatcher v. Comer, 73 Ga. 418,

Cas. Ag. 698; Davis v. Kobe, 36 Minn. 214, 1 Am. St. Rep. 663, Cas

Ag. 700; Dolan v. Thompson, 126 Mass. 183, Cas. Ag. 684; Comer v

Way, 107 Ala. 300, 19 So. Rep. 966, 54 Am. St. Rep. 93.

§ 309. Duty to account.— It is the duty of the fae

tor to account to his principal for all goods, proper t;

and moneys of the principal, which come into his hands

as factor, after deducting his own proper advances and

commissions.

See Cooley v. Betts, 24 Wend. 203, Cas. Ag. 702.

The principal may follow and recover his propeity

or its proceeds so long as it can be identified and urtiil

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