In them, and a general lien upon them. "When, therefore, he sells in his own right,

It is within the scope of his authority ; and it may be right, therefore, that the prin-

cipal should be bound by the consequences of such a sale ; amongst which the right

of setting off a debt due from the factor is one. But the case of a broker is differ-

ent; he lias not the possession of the goods, and so the vendee cannot be deceived

by that circumstance ; and besides, the employing of a person to sell goods as a

broker, does not authorize him to sell in his own name. I^ therefore, he sell in hia

own name, he acts beyond the scope of his authorit}', and his principal is not bound.

But it is said that by these means the broker would be enabled, by his principal, to

deceive innocent persons. The answer, however, is obvious, that this cannot be so,

unless the principal delivers over to him the possession and indicia of property. Tht

rule stated in the case in Salkeld (Hern v. Nicholas), must be taken with some quali-

fications ; as, for instance, if a factor, even with goods in his possession, act beyond

the scope of his authority-, and pledge them, the principal is not bound ; or if a

broker, having goods delivered him, be desired not to sell them, and he does sell

them, but not in market overt, the principal may recover them back. The truth is,

that in all cases, except where goods are sold in market overt, the rule of caveat

emptor applies." A broker is a person employed in the negotiation of mercantile

contracts, and according to the branch of business to which he devotes himself, he

Is called an exchange broker, a stock broker, a merchandise broker, a ship broker, or

an insurance broker. The character of factor and broker, however capable of being

distinguished, are frequently combined; the broker having possession of what he is

employed to sell, or being empowered to obtain possession of what he is employed

to purchase; thus a broker is commonly intrusted with negotiable instruments, in-

dorsed in blank, for sale. In these cases he is, properly speaking, a factor, clothed

152 Mercaxtile persons.

Definition and character of Agent.

There are some peculiar enactments relating to stock brokers.

Stat. 10 Anne, c. 19, s. 12, limits their commission on government

stock to 25. 9d. per cent., and 7 Geo. 2, c. 8, commonly called Sir

John Barnard's Act, requires each of them to keep a book, called

the 'broker's hook, in which he is to enter all contracts for stock made

by him on the same day, with the names of the parties and the day

which book he is to produce when lawfully required, (r)

(r) See Dunbar v. Wilson, 6 Bro. P. C. 6.

with the rights, and suhject to the responsibilities of that relation. See Story on

Agenc}-, from 28 to 35, and the following cases on the authority, duties, and respon.

sibilities of factors: Evans v. Potter, 2 Galli. Rep. 13. Van Amringe v. Peabody, 1

Mass. C. C. R. 440. Thompson v. Perkins, b ibid. 232. Loraine v. Cartwright, 3

Wash. C. C. R. 151. Brown v. McGran, 14 Peters, 479. Leverick v. Meigs, 1 Cow-