There is a newer version of the North Dakota Century Code
2009 North Dakota Code
3 Agency
3-06 Factors
Download pdfprincipal with the possession or control of the property or authorized to receive payment therefor
from the purchaser. 3-06-02. Authority of factors. In addition to the authority of agents in general, a factor has actual authority from the factor's principal unless specially restricted: 1. To insure property consigned to the factor uninsured. 2. To sell property consigned to the factor on such credit as is usual, except such
things as it is contrary to usage to sell on credit, but having once agreed with the
purchaser upon the terms of credit, a factor may not extend it, nor may the factor
pledge, mortgage, or barter the property so consigned. 3. To delegate the factor's authority to the factor's partner or servant, but not to any
person in an independent employment. 3-06-03. Ostensible authority of factor. A factor has ostensible authority to deal with the property of the factor's principal as the factor's own in transactions with persons not having
notice of the actual ownership. 3-06-04. Must obey instructions - Exception. A factor must obey instructions of the factor's principal to the same extent as any other employee, notwithstanding any advances the
factor may have made to the principal upon the property consigned to the factor, except that if
the principal forbids the factor to sell at the market price, the factor nevertheless may sell for the
factor's reimbursement after giving to the factor's principal reasonable notice of the factor's
intention to do so and of the time and place of sale, and proceeding in all respects as a pledgee. 3-06-05. Liability under guaranty commission. A factor who charges the factor's 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 the factor's own and not as a mere guarantor for the
purchaser, but the factor does not thereby assume any additional responsibility for the safety of
the factor's remittance of the proceeds. 3-06-06. Relieved of liability by consent only. A factor who receives property for sale under a general agreement or usage to guarantee the sale or the remittance of the proceeds
cannot obtain relief from responsibility therefor without the consent of the factor's principal. Page No. 1 Document Outline chapter 3-06 factors
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