Question

A mercantile agent includes ______.

• A. Factors
• B. Brokers
• C. Auctioneers
• D. All of the above

Answer 1

The correct option is D All of the above

Mercantile agents may be of several kinds, c.g., brokers, factors, auctioneers, del credere agents; commission agents, insurance agents.

Broker: A broker is one who makes bargains for another and receives commission (brokerage) for so doing. He is an agent whose ordinary course of business is to negotiate and make contact for the sale and purchase of goods etc., of which he has neither possession nor control. He acts in the name of his principal.

Factor: A factor is a person who is entrusted with the possession of goods, and who has the authority to buy, or sell or otherwise deal with the goods or merchandise, or to raise money on their security. A factor, usually, sells goods in his own name, he has a general lien on the goods.

Auctioneer: An auctioneer is an agent who is entrusted with the possession of goods for sales to the highest bidder at a public auction. He has the authority to deliver the goods on receipt of the price. He can sue for the price in his own name. However, unlike a factor, he has only 3 particular lien on the goods for his charges.