2009 California Civil Code - Section 2026-2030 :: Article 3. Factors

CIVIL CODE
SECTION 2026-2030

2026.  A factor is an agent who, in the pursuit of an independent
calling, is employed by another to sell property for him, and is
vested by the latter with the possession or control of the property,
or authorized to receive payment therefor from the purchaser.

2027.  A factor must obey the instructions of his principal to the
same extent as any other employe, notwithstanding any advances he may
have made to his principal upon the property consigned to him,
except that if the principal forbids him to sell at the market price,
he may, nevertheless, sell for his reimbursement, after giving to
his principal reasonable notice of his intention to do so, and of the
time and place of sale, and proceeding in all respects as a pledgee.

2028.  A factor may sell property consigned to him on such credit as
is usual; but, having once agreed with the purchaser upon the term
of credit, may not extend it.

2029.  A factor who charges his principal with a guaranty commission
upon a sale, thereby assumes absolutely to pay the price when it
falls due, as if it were a debt of his own, and not as a mere
guarantor for the purchaser; but he does not thereby assume any
additional responsibility for the safety of his remittance of the
proceeds.

2030.  A factor who receives property for sale, under a general
agreement or usage to guarantee the sales or the remittance of the
proceeds, cannot relieve himself from responsibiliy therefor without
the consent of his principal.

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