Brawer v. Mendelson Bros. Factors, Inc.

Pound, Ch. J.

Plaintiffs are manufacturers and defendant is a factor or commission merchant. Under a written contract dated July 15, 1931, defendant agreed to make sales for plaintiffs through a sales agent. The defendant assumed the credit risk for the merchandise sold, provided that it had approved the credit risk in writing. In the event of dispute between the customer, the sales agent and plaintiffs, the factor had the privilege of charging hack the account. This means that defendant left it to the parties to settle the dispute without assuming the credit risk.

The contract was terminated…