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

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