The difference between a factor and a broker is that the former

Commerce

JAMB 2014

A. is licensed to sell goods on auction
B. has a lien on the goods he possesses
C. is not in possession of the goods
D. cannot sell in his own name

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Correct Answer: Option B

Explanation

Factors and Brokers are both and equally agents; but with this difference: the Factor is entrusted with the property which is the subject-matter of the agency; the Broker is only employed to make a bargain in relation to it. This means that, a broker does not take the possession of goods while a factor takes title of the goods

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