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

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 – has a lien on the goods he possesses

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 possession of goods while a factor takes the title of the goods