An agent who has goods consigned to him for the purpose of negotiating a sale of the same, for a commission, is a factor or commission merchant.9 Where the consignee, for an additional compensation, guarantees the payment of the debt due from the buyer of the consignment of goods, delivered to the consignee, the agent is called a del credere factor.

Factors may sell goods in their own name, and they may buy goods in like manner for their principal, and their acts will bind the principal.10 A factor employed to ship goods, as well as to buy goods, has authority incidental thereto to bind the principal for the payment of the freight. Factors have also a special property in the goods and are treated as the owners of the same.11 They may insure the goods both for themselves and for the benefit of the principal.