Harbert v. Neill Bros.

Citations

• 49 Tex. 143

Syllabus

<p>1. Galveston cotton market—Bules of.—A sale on a basis is made by the parties agreeing, the one to sell, and the other to buy a given number of bales of cotton at an agreed price per pound, for “good ordinary cotton,” that being the usual grade mentioned in quotations, and to which all others are referred. Cotton delivered on such a sale, going above or below “good ordinary,” is paid for ratably, at a higher or lower price, according to the grade. As soon as possible, the factor designates the cotton sold by marks and number of bales. This is usually done first in the weighing order or classing order. The cotton is then classed according to the standard of the market. When the weight and classification of each bale is ascertained, the factor makes an invoice, in which the aggregate weight of all the bales in each grade, with the price carried out, so as to show the sum-total of the cost, which is handed to the buyer, and the money paid, which constitutes a complete sale.</p> <p>2. Same.—The ascertainment of the amount to be paid for cotton sold on a basis by its classification, is, in effect, what the factor does after its sale by sample, by his report of sales to each consignor whose cotton is included in the same sale. Such sale could act upon cotton in hand or under control of factor.</p> <p>3. Advances on uncompleted sale.—The effect of an advance on such sale on a delivery order before weighing must depend upon the custom and usage in making such sale; but if such payment was made for use of the factor, it would not bind the cotton as against the owner, and would he illegal.</p> <p>5. Usages of trade.—Factors.—Factors are governed by usage of the trade of the place where they transact business, in absence of express authority. Unless warranted by usage, a factor could not sell on credit, and he is bound by usage and custom in making and consummating his sales. Purchasers are charged with knowledge of their usages, and are bound by them.</p> <p>5. Same.—Doubt