ADVANCES

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ADVANCES

ADVANCES, contracts. Said to take place when, a factor or agent pays to his principal, a sum of, money on the credit of goods belonging to theprincipal, which are placed, or are to be placed, in the possession of thefactor or agent, in order to reimburse himself out of the proceeds of thesale. In such case the factor or agent has a lien to the amount of hisclaim. Cowp. R. 251; 2 Burr. R. 931; Liverm. on Ag. 38; Journ. of Law, 146. 2. The agent or factor has a right not only to advances made to theowner of goods, but also for expenses and disbursements made in the courseof his agency, out of his own moneys, on account of, or for the benefit ofhis principal; such as incidental charges for warehouse-room, duties,freight, general average, salvage, repairs, journeys, and all other actsdone to preserve the property of the principal, and to enable the agent toaccomplish the objects of the principal, are to be paid fully by the latter. Story on Bailm. 197; Story on Ag. Sec. 335. 3. The advances, expenses and disbursements of the agent must, however,have been made in good faith, without any default on his part Liv. on Ag.14-16; Smith on Merc. 56 Paley on Ag. by Lloyd, 109; 6 East, R. 392; 2 Bouv.list. n. 1340. 4. When the advances and disbursements have been properly made, theagent is entitled not only to the return of the money so advanced, but tointerest upon such advances and disbursements, whenever from the nature ofthe business, or the usage of trade, or the particular agreement of theparties, it may be fairly presumed to be stipulated for, or due to theagent. 7 Wend. R. 315; 3 Binn. R. 295; 3 Caines' R. 226; 1 H. Bl. 303; 3Camp. R. 467 15 East, R. 223; 2 Bouv. Inst. n. 1341. This just rulecoincides with the civil law on this subject. Dig. 17, 1, 12, 9; Poth. Pand.lib. 17, t. 1, n. 74.

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