The Factors Act 1823 was the first major statutory exception to the rule nemo dat quod non habet in English law. The limited existing analysis of this Act suggests that it came about through the lobbying actions of merchants. This article demonstrates that the Factors Act 1823 was actually a compromise, and was considered a mere stepping-stone for further reform. The additional role of government policy in the development of the Factors Act 1825 is also demonstrated.Peer-reviewedPost-prin
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