Commercial Credit Co. v. Girard National Bank

Citations

• 246 Pa. 88
• 92 A. 44
• 1914 Pa. LEXIS 477

Syllabus

<p>Contracts — Sales—Factors—Bel credere factors — Principal and agents — Vendor and vendee — Construction of contracts — Intention. ’</p> <p>1. There is no magic in the word “agency”; persons may suppose that their relationship is that of principal and agent when in point of law it is not. If the contract in its terms really constitutes one of the parties a purchaser from the other, the'use of words implying' that such purchaser was an agent does not change the relationship.</p> <p>■ 2. A. del credere factor is one who sells goods on credit and who for an additional commission, called a “del credere commission,” guarantees the solvency of the purchaser and his performance of the contract. Such factor is a mere surety liable only to his principal in case the purchaser make default.</p> <p>3. In a proceeding in equity to determine the ownership of certain funds, resulting from the collection of accounts for iron sold, which accounts had been assigned to the plaintiff by a third company, the fund was properly awarded to the assignee of the accounts, as against the company which had manufactured the iron, where it appeared that the assignor had sold the iron in question under a contract with the iron company which provided, inter alia, that the iron company “does hereby appoint (the assignor) as its exclusive sales agent;......the said agent agrees to prosecute diligently the sale of all iron manufactured by the said company, and to secure for it the very best price possible, and the company also agrees to refer all inquiries for the purchase of iron that it may receive direct from time to time, directly to the agent; the price or prices at which said iron shall.be sold shall be mutually agreed upon between the said company and its said agent at least once a month or oftener if necessary;......all pig iron manufactured by said company shall be billed by it to the said agent, and payments therefor shall be made by'said company on all orders furnished by them to said com