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Bouvier's Law Dictionary, Revised 6th Edition (1856)

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.

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