1 T. R. 113. Stokes V. Lewis, 1 t. R. 20.

{h) Capp V. Topham, 6 East, 392.

* The law relative to the rights of a factor, who has made advances to his prin-

cipal upon the goods consigned to him for sale, was discussed in the case of Brown

& Co. V. McGrann, 14 Peters, 479. Judge Storj-, in delivering the opinion of the

Court, says, ""We understand the true doctrine on this subject to be this: —

"Whenever a consignment is made to a factor for sale, the consignor has a right,

generally, to control the^ sale thereof, according to his own pleasure, from time to

time, if no advances have been made, or liabilities incurred on account thereof; and

the factor is bound to obey his orders. This arises from the ordinary relation of

principal and agent. If, however, the factor makes advances, or incurs liabilities on

account of the consignment, by which he acquires a special property- therein, then

the -factor has a right to sell so much of the consignment as may be necessary to re-

Imburse such advances or meet such liabilities, unless there is some existing agree-

ment between himself and the consignor which controls or varies this right. Thus,

for example, if contemporaneous with the consignments and advances or liabilities,

there are orders given by the copsignor, which are assented to by the factor, that

the goods shall not be sold until a fixed time, in such a case, the consignment is pre-

sumed to be received by the factor subject to such orders; and he is not at liberty to

sell the goods to reimburse his advances or liabilities until after that time has elapsed.

The same rule will apply to orders not to sell below a fixed price ; unless, indeed, the

consignor shall, after due notice and request, refuse to provide anj^ other means to

reimburse the factor. And in no case will the factor be at liberty to sell the con-

signment contrary to the orders of the consignor, although he has made advances or

Incurred liabilities thereon, if the consignor stands ready and offers to reimburse and

discharge such advances and liabilities.

"On the other hand, where the consignment is made generally, without any spe-

cific orders as to the time or mode of sale, and the factor makes advances or incurs

PRmCIPAL AND AGENT. 16G

Rights of third Persons against Principal.

principal's instructions, he does an act which, may be either right or

wrong, but which he is induced to believe right by the conduct of

his employer, for, though there can be no indemnity between wrong-

doers, yet that rule applies only where the party who seeks for the

Indemnity must have been conscious that in committing the act,

against the consequences of which he asks to be indemnified, he

was a wrong-doer. (^)

Section' IV. — Rights of third Persons against Principal.

Next in order are the considerations respecting the mutual

rights of the Principal and third Person.

{i) Betts V. Gibbins, 2 Ad. & Ell. 57. Humphreys v. Pratt, 5 Bligh, N. S. 154

Collins V. Evans, Per Tindal, C. J., 5 Q. B. 830. See as to form of proceedings, Rawl-