ADVANCES

1 definition found

From Bouvier's Law Dictionary, Revised 6th Ed (1856) [bouvier]:

  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 the
  principal, which are placed, or are to be placed, in the possession of the
  factor or agent, in order to reimburse himself out of the proceeds of the
  sale. In such case the factor or agent has a lien to the amount of his
  claim. 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 the
  owner of goods, but also for expenses and disbursements made in the course
  of his agency, out of his own moneys, on account of, or for the benefit of
  his principal; such as incidental charges for warehouse-room, duties,
  freight, general average, salvage, repairs, journeys, and all other acts
  done to preserve the property of the principal, and to enable the agent to
  accomplish 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, the
  agent is entitled not only to the return of the money so advanced, but to
  interest upon such advances and disbursements, whenever from the nature of
  the business, or the usage of trade, or the particular agreement of the
  parties, it may be fairly presumed to be stipulated for, or due to the
  agent. 7 Wend. R. 315; 3 Binn. R. 295; 3 Caines' R. 226; 1 H. Bl. 303; 3
  Camp. R. 467 15 East, R. 223; 2 Bouv. Inst. n. 1341. This just rule
  coincides with the civil law on this subject. Dig. 17, 1, 12, 9; Poth. Pand.
  lib. 17, t. 1, n. 74.