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This eBook from the Gutenberg Project consists of approximately 319 pages of information about The Government Class Book.

Sec.9.  A broker is an agent employed to negotiate sales between parties for a compensation in the form of a commission, which is commonly called brokerage.  His business consists chiefly in negotiating exchanges; or in buying and selling stocks, goods, ships, or cargoes; or in procuring insurances and settling losses; and as he confines himself to one or the other of these branches, he is called an exchange broker, stock broker, insurance broker, &c.  A broker differs from a factor.  He has not the custody of the goods of his principal.  He is merely empowered to effect the contract of sale; and when this is done, his agency ends.  If a broker executes his duties in such a manner that no benefit results from them, or is guilty of gross misconduct in selling goods, he is not entitled to a commission or compensation.

Sec.10.  A lien, as the claim of a factor upon goods intrusted to him for sale, has been noticed. (Sec.3.) The right of lien extends to others than factors.  It is intended also for the benefit of manufacturers, mechanics, and other persons carrying on business for the accommodation of the public.  A tailor has a lien upon the garment made from another’s cloth until he is paid for the making; a shoemaker upon the shoes made from another’s leather; a blacksmith upon the horse he has shod; an innkeeper upon the horse or goods of his guest; and common carriers upon the goods they transport.  But they cannot hold the property for any other debt; nor can they sell it to satisfy their claim.  Whenever a person allows property to go out of his possession, he loses his lien.

Chapter LIX.

Partnership.

Sec.1.  A partnership is an association formed by contract between two or more persons, for joining their money, labor, or skill, in lawful business, the profits to be divided and the loss to be borne by the partners in certain proportions.  It is a partnership if one furnishes the funds and the other performs the labor; or if, when no money is necessary, each agrees to do his share of the labor.  A partnership or association of this kind is denominated a firm, or house.

Sec.2.  The act of any one of the firm is considered the act of all, and binds all; and either of them is liable for all the debts.  But if a bill or note is drawn by one partner in his own name only, without appearing to be on partnership account, he alone is bound, though it were made for a partnership purpose.  A partner buying goods on his own account for his individual use, is alone liable; but if they afterward go to the use of the partnership, all become responsible.

Sec.3.  Sometimes a person agrees to receive, by way of rent, a portion of the profits of a farm, a tavern, or a manufactory; or an agent or a clerk receives a share of the profits for his labor.  But as there is in these cases no partnership, the persons who buy the stock and hire the labor are alone responsible.

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