Factor Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Factor, written in plain English, along with examples of how it is used.
What is Factor?
n. 1) Salesman who sells in their own name on other’s behalf in exchange for a commission on the services provided. 2) Something that is a contributing factor to the result.
History and Meaning of Factor
The term "factor" has two main definitions. The first definition refers to a person or company that sells goods on behalf of another in exchange for a commission. This definition dates back to the 15th century when factors were common in the textile trade. They would act as intermediaries between textile producers and merchants and handle the sale of the textiles for a commission.
The second definition of "factor" refers to something that contributes to a particular result or outcome. This definition dates back to the 17th century when "factor" was first used in mathematics to describe quantities that help to create a product. Today, this definition is used in many different fields, including science, statistics, and finance.
Examples of Factor
Example 1: A clothing manufacturer from Italy hires a factor (salesman) in the United States to sell their products to American retailers on a commission basis.
Example 2: Climate change is a major factor contributing to the increasing frequency of natural disasters such as hurricanes, floods, and wildfires.
Example 3: The company's financial instability was a deciding factor in the board's decision to terminate the CEO.
Example 4: The improvement in product quality was a significant factor in the company's success.
Example 5: The jurors were instructed to consider all the factors in the case before making their decision.
Legal Terms Similar to Factor
- Agent - A person or company who is authorized to act on behalf of another.
- Broker - A person or company who acts as an intermediary between buyers and sellers in a financial transaction.
- Stimulus - Something that causes a response or reaction.